Kiri Industries Inks $676 Million Deal to Divest 37.57% Stake in DyStar
By ScanX News Team
Kiri Industries Ltd has entered into a share purchase agreement to sell its 37.57% stake in DyStar Global to Zhejiang Longsheng Group Co., Ltd for $676.26 million. The deal includes a potential additional consideration of $20.29 million, subject to certain conditions. This transaction represents a significant monetization of Kiri's investment in DyStar, a global supplier of dyes and chemicals to the textile industry. The deal value exceeds Kiri's current market capitalization of ₹3,800 crore, highlighting its substantial impact on the company's financial position.
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Kiri Industries Ltd , a key player in the chemical industry, has made a significant move in the market by announcing a major stake sale in its associate company, DyStar. The company has entered into a share purchase agreement to sell its 37.57% stake in DyStar Global to Zhejiang Longsheng Group Co., Ltd, a Chinese textile chemical company, for $676.26 million.
Deal Highlights
| Detail | Value |
|---|---|
| Sale Value | $676.26 million (approximately ₹5,630 crore) |
| Stake Sold | 37.57% in DyStar Global |
| Buyer | Zhejiang Longsheng Group Co., Ltd |
| Additional Consideration | Potential $20.29 million |
Transaction Details
The agreement marks a substantial financial transaction for Kiri Industries, with the deal value standing at $676.26 million. This move represents a significant monetization of Kiri's investment in DyStar, a global supplier of dyes and chemicals to the textile industry.
Potential Additional Payment
In addition to the primary deal value, the agreement includes a provision for a potential additional consideration of $20.29 million, payable by the purchaser subject to certain conditions.
Strategic Implications
This divestment is likely to have substantial implications for Kiri Industries' financial position and strategic focus. Notably, the deal value of $676.26 million exceeds Kiri's current market capitalization of ₹3,800 crore, highlighting the significance of this transaction for the company.
Market Impact
The announcement of this significant stake sale is expected to draw considerable attention from investors and industry analysts. It represents a major shift in Kiri Industries' investment portfolio and its relationship with DyStar.
Closing Conditions
It's important to note that the transaction is subject to closing conditions and regulatory approvals. Stakeholders will be keenly watching for any further announcements from Kiri Industries regarding the progress of these approvals and the eventual completion of the deal.
Note: Investors are advised to monitor official communications from the company for any updates or additional details regarding this transaction.
Historical Stock Returns for Kiri Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.84% | -3.50% | -8.90% | -9.47% | +71.37% | +24.09% |
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