UPL share price up 5% after company acquires Chinese agrochemical maker Yoloo Loating Bio-tech
Apr. 29, 2020
The share price of UPL rose over 5 percent intraday on April 28 after the company said it has completed the acquisition of Yoloo (Laoting) Bio-technology, a China-based agrochemical maker.
The Company hereby confirms the completion of the acquisition of Yoloo (Laoting) Bio-technology, that was announced on November 14, 2019, post all customary and regulatory approvals and the transaction is closed, it said in a filing to the stock exchanges.
The stock price gained almost 14 percent in the last 15 days and was quoting at Rs 369.90, up Rs 20.25, or 5.79 percent at 09:56 hours.
UPL, through one of its subsidiaries at Hong Kong, entered into a definitive agreement to acquire 100 percent shares of Yoloo (Laoting) Bio-technology, an agrochemical company based in Heibei Province, China and issued 25 percent shares out of its subsidiary to Beijing Yoloo, according to a media release.
UPL had announced the acquisition of 100 percent in Yoloo Biotech from Beijing Yoloo Bio-technology Corporation in November last year in an all-cash deal worth around Rs 95 crore.
UPL will gain from Yoloo's broad distribution base, product registrations and access to the Chinese domestic market creating a strong footprint for growth in China. The company also intends to optimise Yoloo's manufacturing facilities to augment our global production capabilities. UPL will build on the relationships that Yoloo has cultivated and serve its customers with a wider portfolio, UPL said.
"Through our purpose “Open Ag”, our goal is to create an open network for agriculture, activating connections across the world’s agriculture system. It aims to power new levels of sustainable growth – for farmers, for producers, for customers, for partners and for societies everywhere. UPL’s acquisition of Laoting Yoloo will enhance our ability to achieve this purpose," said UPL’s Global CEO, Jai Shroff.
By Sandip Das
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