Max Speciality Films, manufacturing arm of Max Ventures and Industries, has approved a joint venture with Topann Printing of Japan. The Japanese company will acquire 49 percent in Max Speciality Films through a combination of both primary and secondary issuance of shares, said Sahil Vachani, MD, Max Ventures and Industries.
In conversation with CNBC-TV18, he said that the total transaction is for Rs 200 crores for 49 percent and 53 crores will move into Max Specility and 146 crores will move into Max Ventures.
Vachani said Rs 53 crores will be used for debt reduction. Max Speciality increased the capital expenditure (capex) in this business from 43,000 tonnes to 75,000 tonnes. With the money coming in after the JV, the debt-equity ratio of Max Speciality will come down, added Vachani.
Further, he said that Rs 146 crores will be used for capex funding for other verticals, primarily in the education space. He also said that Topann and Max Ventures will have equal representation on the board.
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