AgroPages-Godrej Agrovet to buy 45.29% in agrochem company Astec LifeSciences-Agricultural news

Godrej Agrovet Ltd, agri-business subsidiary of Godrej Industries Ltd, will buy 45.29% stake in agrochemicals and pharmaceutical intermediates firm Astec LifeSciences Ltd from its promoters for around Rs212 crore.

The board of directors of Godrej Agrovet said they have approved execution of a share purchase agreement with promoters of Astec LifeSciences.

The acquisition of the promoter's stake in Astec LifeSciences is being made at Rs190 a share, which is a huge discount to the company's current market price of Rs242.25 on the NSE.

Godrej Agrovet will also acquire Astec LifeSciences' wholly-owned subsidiary Astec Corp Care Pvt Ltd, both the companies said in a disclosure to the exchanges.

Currently, the promoters control 55.29-per cent stake in Ateck LifeSciences.

Following the deal, Godrej Agrovet will make a mandatory open offer to the shareholders of Astec LifeSciences.

Godrej group may buy additional stake from the promoters if it fails to gain majority control in Asteck LifeSciences after the open offer.

Godrej Agrovet expects to benefit from Astec LifeSciences' expertise and strong market position in agri business while the induction of a majority shareholder will significantly enhance Astec LifeSciences's growth prospects and competitive position.

Astec was established in 1994 with a focus on the agrochemical and pharmaceutical industries. Today, the company manufactures a wide range of agrochemical active ingredients and pharmaceutical intermediates. Astec has also forged enduring relationships with large and small companies all over the world.