Essel Propack shares surged over 10 per cent to hit fresh 52-week high of Rs 247 on Wednesday after the packaging material manufacturer announced buyout of Essel Deutschland Germany (EDG), which was a joint venture till date.
Thane-based Essel Propack said that Lamitube Technologies Ltd (LTL), a wholly owned subsidiary of the company in Mauritius has agreed to acquire remaining 75.1 per cent stake in EDG, which was till now a joint venture, with LTL as a partner with 24.9 per cent stake.
Post this transaction, EDG will become a 100 per cent subsidiary of Essel Propack and boost the consolidated revenue of Essel Propack by 11 per cent, the company said.
"The EGD revenue of approximately $40 million will now be consolidated in Essel's global revenue and will boost consolidated revenue by 11 per cent," Essel Propack said in a release to Bombay Stock Exchange.
Essel Propack believes the acquisition will help it in unlocking synergies such as enhanced cross selling opportunities in the German market, sourcing flexibility and better capacity utilization at all of its Europe plants.
Essel Propack shares closed 3.4 per cent higher at Rs 231.30 compared to a flat Nifty.
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