Apollo Micro Systems has signed a definitive share purchase agreement to acquire a 41.33% promoter stake in Premier Explosives for around Rs 1,550 crore in an all-cash deal.
The acquisition is expected to be completed by the third quarter ending December , subject to regulatory approvals, shareholder approval and other customary closing conditions.
The share price of Apollo Micro Systems surged nearly 3% in the intraday trading session. The share price of Premier Explosives have declined 2.62% in the intraday trading session following the news.
Premier Explosives to operate under existing brand
Apollo Micro System said in its regulatory filing that after the transaction will get completed, Premier Explosives will become part of Apollo Micro Systems while continuing to operate under its existing brand.
Premier Explosives is engaged in the business of high energy materials, rocket motors for defence and aerospace, countermeasures and munitions. Apollo Micro Systems, which has over four decades of experience in the defence sector, designs, develops and manufactures advanced electronic, electro-mechanical and engineering systems.
Acquisition to strengthen defence and space capabilities
Apollo Micro Systems said the acquisition will combine the strengths of both companies in defence systems and energetic materials. The company expects the deal to improve operational efficiencies, strengthen research and development capabilities and expand participation in defence and space programmes.
Commenting on the acquisition, Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, said, “This acquisition strengthens our nation’s defence manufacturing capability and deepens our sovereign expertise in energetic materials and space programmes. Together, we are better positioned to safeguard national security interests and support our armed forces with greater scale, resilience, and technological self-reliance.”
About Apollo Micro Systems
Apollo Micro Systems Limited, a 41-years-old pioneer in defence technology, specializes in the design, development, and manufacture of advanced electronic, electro-mechanical, and engineering systems.
With multi-domain, multidisciplinary capabilities and robust infrastructure, the company claims to equipped to build cutting-edge defence technologies and produce them at scale for national strategic needs. Building upon capabilities of subsidiary companies, AMS as a group positions itself as a Tier-I Original Equipment Design Cum manufacturer.
About Premier Explosives
Premier Explosives (PEL) is a leading manufacturer of high energy materials for defence, aerospace and mining sectors. It also undertakes operation and maintenance (O&M) services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur.