Shares of Kiri Industries fell 8% on May 30 after the company said it will sell its entire 37.6% stake in DyStar Global Holdings to Zhejiang Longsheng Group for $697 million.
"(Zhejiang Longsheng Group) has agreed to acquire 2,623,354 equity shares, representing 37.57% of the paid-up share capital of DyStar Global Holdings (Singapore) Pte. Ltd. held by the Company, for a base consideration of $676,260,000. An additional consideration of $20,287,800 is payable by the Purchaser to address any shortfall in the base consideration or to fulfil the Purchaser’s obligations under the Share Purchase Agreement (SPA)," said Kiri Industries in a stock exchange filing.
Zhejiang Longsheng Group Co Ltd is a China-based company mainly engaged in the business of textile chemicals and intermediates.
"The long-stop date for the fulfilment or waiver of the last of the conditions in the SPA is scheduled for October 2, 2025, and may be extended, if required, up to November 3, 2025," added Kiri Industries.
At 9:40 am on May 30, Kiri Industries shares on NSE were trading 5% lower at Rs 691 apiece. The 52-week low of the stock is Rs 280 and 52-week high is Rs 740. The market capitalisation of the stock is Rs 3,775 crore.
J.P. Morgan Securities Asia Private Limited is acting as financial advisor to the company in relation to this transaction.
Kiri Industries will declare its March quarter results later on May 30.
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