CHENNAI: Manali Petrochemicals Limited, a Chennai-based manufacturer of petrochemical products, has announced the proposed divestment of its step-down subsidiary, Notedome Limited, UK.
In an exchange filing on Wednesday, the company said that its Board of Directors has approved the proposal for its overseas wholly-owned material subsidiary, AMCHEM SG, to sell its entire stake in Notedome Limited to C.O.I.M. S.p.A. (Chimica Organica Industriale Milanese), a globally recognised leader in chemical specialties.
The transaction is subject to shareholder approval, which will be sought through a postal ballot in accordance with regulatory requirements. The seller and buyer will enter into a binding Share Purchase Agreement in due course.
C.O.I.M. S.p.A. will acquire the business for a consideration of at least 8.5 times the adjusted EBITDA of 2.12 million British Pounds, a value determined jointly by both parties. The sale will be conducted on a cash-free and debt-free basis, with customary adjustments as per the agreement.
Upon successful completion of the transaction, tentatively expected by the end of November 2025, Notedome Limited, UK, along with its subsidiary, will cease to be a wholly-owned step-down subsidiary of Manali Petrochemicals Limited. The transaction does not constitute a related-party transaction.
For FY2024-25, Notedome Limited, UK, contributed approximately 10.63% of the consolidated income and 5.57% of the consolidated net worth of Manali Petrochemicals Limited. The company has assured that it will keep the stock exchanges informed as the transaction progresses.
