Kanoria Chemicals & Industries Limited has informed the Exchange regarding Notice of Postal Ballot
KANORICHEM · price
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Awaiting price reaction for this filing.
Kanoria Chemicals has sent a postal ballot notice to shareholders seeking approval to sell its entire stake in Swiss material subsidiary APAG Holdings AG, along with step-down subsidiaries APAG Electronik AG and APAG Electronik s.r.o. (Czech Republic), to Anevolve Private Limited and/or Asia Investments UK Private Limited. The deal is structured in two phases: first, the buyer will inject fresh equity of about USD 19.4 million (EUR 17.78 million) into APAG, diluting Kanoria's stake from 55% to around 14.3%, and then acquire the remaining 100% in a second tranche. Before the deal, Kanoria will convert a EUR 2.64 million loan into 540 APAG equity shares. The proceeds will allow APAG to fully repay all outstanding loans and interest owed to Kanoria, helping the parent recover its exposure while exiting the European automotive electronics business.
Shareholders are being asked to vote on a strategic exit from the European auto-components subsidiary, with the benefit of full loan recovery and a sharper focus on core Indian operations. Near-term stock reaction may depend on the valuation realised in Phase 2, but the transaction removes a loss-making, volatile overseas business and recovers locked-up capital.