Fairfax India Holdings Corporation is to acquire 51 per cent equity in Privi Organics, for Rs 370 crore ($55 million).
It has entered into a share subscription agreement with Privi Organics and a share purchase agreement with existing shareholders. The transaction is subject to customary closing conditions and is expected to conclude in the third quarter of 2016. Additionally, the boards of directors of Adi Finechem and Privi Organics have approved a scheme involving the two to build an Indian speciality chemicals entity, with both companies converting renewable waste feedstock into value-added speciality chemicals. “The proposed scheme will bring significant diversification and synergies to both partners, with Adi Finechem gaining access to high quality research and development facilities, and Privi Organics benefiting from Adi Finechem’s focus on cost optimisation and capital efficiency,” said Fairfax.