Pearl Polymers Ltd to sell packaging solutions business to Manjushree Technopack Ltd for Rs. 92.50 crore

The Board of Directors of Pearl Polymers Limited in its meeting held on Monday, 21st September, 2020 which commenced at 10:45 AM and concluded at 11:10 AM has approved the sale and transfer of the Company's business undertaking(s) engaged in manufacturing, marketing and sale of rigid plastic packaging solutions for sale gift or supply to other business entities for packaging of products (B2B Business) on a going concern basis, by way of a slump sale for a lump sum consideration without values being assigned to any individual assets and assumed liabilities, to Manjushree Technopack Limited ('MTL') on such terms and conditions as provided under the Business Transfer Agreement ('BTA') dated 21st September 2020 executed between the Company, MTL, Mr. Chand Seth, Mr. Amit Seth, Mr. Varun Seth and Mr. Udit Seth ('Promoters')and subject to such permissions and consents, that may be required including the consent of the shareholders of the Company.

The cash consideration payable by MTL to the Company for transfer of Target Business is to be determined, by making certain adjustments to the pre-agreed enterprise value of INR 92,50,00,000 (Rupees ninety two crore fifty lakh) of the Target Business. Such adjustments include adjustments on accounts of working capital, capital expenditure and 'debt like items' etc., in the manner agreed between the parties under the BTA.

The sale of Target Business (comprising of B2B Business and relevant asset and liabilities of the B2B Business) to MTL (i.e. closing) is conditional to the completion of customary conditions precedent (including obtaining the approval of shareholders by the Company and other regulatory authorities) by the parties, as applicable or agreed between the parties. The parties expect to achieve closing within a period of approximately 3 (three) months from the date execution of the BTA.

Shares of PEARL POLYMERS LTD. was last trading in BSE at Rs.17.15 as compared to the previous close of Rs. 16.35. The total number of shares traded during the day was 13224 in over 193 trades.

The stock hit an intraday high of Rs. 17.15 and intraday low of 15.9. The net turnover during the day was Rs. 225863.

Source : Equity Bulls

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