Tega Industries Limited has announced plans to acquire Molycop, a leading global supplier of grinding media to the mining industry, in a deal valued at $1.5 billion. This strategic move is set to transform Tega into one of the world's leading providers of critical consumables for the mining, mineral processing, and material handling industries.

Transaction Details

The acquisition will be executed through a consortium led by Tega Industries (77%) and Apollo Management Singapore Pte. Ltd. (23%). The deal involves an upfront consideration based on an enterprise value of $1.48 billion, with a potential contingent payment of approximately $120 million within 45 months of the acquisition's completion.

Strategic Rationale

Manak Rai, CEO of Tega Industries, commented on the acquisition: "This transformative deal will significantly expand our product portfolio and global footprint. By combining Tega's expertise in polymer mill linings and wear products with Molycop's leadership in grinding media, we'll be able to offer a comprehensive suite of solutions across the entire comminution circuit."

Key benefits of the acquisition include:

• Complementary product offerings
• Enhanced global presence
• Potential for significant revenue and cost synergies
• Expanded manufacturing footprint and R&D capabilities

Creating a Global Leader

The combined entity is expected to generate annual revenues of approximately $1.7 billion with an EBITDA of $217 million. This positions Tega Industries as a major player in the mining consumables market, with a presence in over 70 countries and access to a broader customer base.

Molycop Overview

Molycop, founded in 1917, is a leading supplier of grinding media with a global manufacturing and sales network. The company operates 13 grinding ball manufacturing facilities and has joint ventures in strategic locations worldwide. Molycop's products are critical for mineral extraction and processing, particularly in copper and gold mining operations.

Financial Highlights

For the fiscal year ending June 2025, Molycop reported:

Funding and Closing

Tega Industries plans to fund the acquisition through a mix of equity (including a potential QIP and preferential allotment to promoters) and debt. The transaction is expected to close by December 31, 2025, subject to customary closing conditions and regulatory approvals.

Market Impact

This acquisition is poised to reshape the mining consumables industry, creating a comprehensive solution provider for the comminution circuit. The combined entity will be well-positioned to address the growing demand for efficient mineral processing solutions, driven by declining ore grades and the need for increased productivity in the mining sector.

Conclusion

The acquisition of Molycop represents a significant milestone for Tega Industries, propelling it into a leadership position in the global mining consumables market. As the mining industry faces challenges such as declining productivity and ore yield, the combined expertise of Tega and Molycop is expected to deliver innovative solutions to meet these evolving needs.

Investors and industry observers will be watching closely as this transaction unfolds, potentially setting the stage for further consolidation in the mining supply sector.

Tega Industries Limited has announced significant changes in its corporate structure and dividend plans, showcasing the company's dynamic approach to leadership and shareholder relations.

New Leadership at Subsidiary

Tega McNally Minerals Limited, a wholly owned subsidiary of Tega Industries Limited, has appointed Mr. Syed Yaver Imam as its new Chief Executive Officer. The appointment is set to take effect from June 01, 2024, as communicated to Tega Industries through a letter dated May 22, 2024. This strategic move is expected to bring fresh perspectives and leadership to the subsidiary's operations.

Revision in Dividend Record Date

In a separate development, Tega Industries has announced a revision in the record date for the payment of the final dividend for the financial year 2024-25. The company initially set the record date as September 08, 2025. However, due to this date being declared a public holiday under the Negotiable Instruments Act, Tega Industries has revised the record date to Tuesday, September 09, 2025.

Dividend Details

The revised record date applies to the final dividend for the financial year ended March 31, 2025. Shareholders of Tega Industries who are on the company's register as of September 09, 2025, will be eligible for the dividend payment. This change ensures compliance with regulatory requirements and provides clarity to shareholders.

Regulatory Compliance

The company has made this announcement in accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tega Industries has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this change.

These developments reflect Tega Industries' commitment to effective corporate governance and transparent communication with its stakeholders. The appointment of a new CEO for its subsidiary signals the company's focus on strengthening its leadership team, while the prompt revision of the dividend record date demonstrates its responsiveness to regulatory changes and dedication to shareholder interests.