Tega Industries to Acquire Molycop for INR 35,17,00,00,000; Plans INR 99,00,00,000 Investment in New Indian Subsidiary

Tega Industries Ltd, a leading provider of grinding media for mining industry and related products, has announced its intention to acquire Molycop for approximately INR 35,17,00,00,000. The acquisition will be financed through a combination of debt and equity. The company plans to borrow up to INR 15,00,00,00,000 from scheduled commercial banks and invest up to INR 36,17,00,00,000 in Tega HoldCo, a wholly owned subsidiary of the company. The investment in Tega HoldCo will be made in two tranches: INR 35,17,00,00,000 by subscription to optionally convertible redeemable preference shares and INR 1,00,00,000 by subscribing to ordinary shares. Additionally, the company plans to incorporate a new wholly owned subsidiary in India, India WoS, and invest up to INR 99,00,00,000 in the India WoS through subscription of equity shares. The investments in Tega HoldCo and India WoS are intended to enable financing for the proposed acquisition.