Japan’s AICA Kogyo has bought a 40 per cent stake in Stylam Industries for Rs 1,525 crore. In an exchange filing, Stylam Industries stated that the Japanese company will purchase a 27.12 per cent stake from promoters Pusha Gupta, Dipti Gupta, and Manav Gupta, and another 12.88 per cent stake from promoters Jagdish Gupta, Saru Gupta, and Nidhi Gupta.
In total, AICA Kogyo will acquire 6,769 crore equity shares of Stylam Industries from the promoters at a transaction price of Rs 2,250 per share, valuing the deal at Rs 1,525 crore.
In the exchange filing, Stylam Industries stated that upon completion of the transaction, AICA Kogyo will float an open offer to the public shareholders at a 2 per cent discount to the last closing price of Rs 2,300.50 per share.
Board of Directors changes
In the exchange filing, Stylam Industries disclosed that Aica Kogyo’s stake purchase agreement will result in an overhaul of the company’s board of directors. Of the maximum 15 board seats, Aica Kogyo will have the right to nominate 8 board members who will be executive or non-executive directors. Also, the Japanese company will recommend one independent director to the board.
Stylam Industries share price movement\
In the aftermath of the stake sale announcement, Stylam Industries’ stock declined by 2.2 per cent in the intra-day trade. The company’s stock closed at Rs 2,250 at the end of the trading period on Friday, compared to the previous close of Rs 2,350.50.
In the last 5 trading sessions, Stylam Industries’ stock gained 3.39 per cent. In the last one month the company’s share price climbed by 9 per cent and gained 38.7 per cent in six months.