UPL Completes Full Acquisition of PT Excel Meg Indo for $6.85 Million

UPL Global Limited (UGL), a step-down subsidiary of UPL Corporation Limited (UCL), acquired an 80% stake in PT Excel Meg Indo, Indonesia (PT Excel). On August 27, 2024, UPL Limited announced that UGL has now acquired the remaining 20% stake in PT Excel.

The acquisition of the remaining 20% stake in PT Excel by UPL Global Limited (UGL) is not considered a related party transaction because the stake sellers are not related parties. Additionally, the promoter, promoter group, and group companies of UPL do not have any direct or indirect interest in PT Excel. No regulatory or governmental approvals were needed for this acquisition and the transaction was completed on August 27, 2024.

Objectives and Effects of Acquisition

UPL, a leading global player in crop protection products, has acquired the remaining stake in PT Excel to strengthen its presence in Indonesia’s agrochemical market. This acquisition aligns with the agreements made between the parties and supports UPL’s strategic goal of expanding its product offerings in the region.

Acquisition Details

Acquisition cost: The acquisition was completed with a cash consideration. The cost to acquire the remaining 20% stake in PT Excel was approximately USD 6.85 million.

Shareholding and Control: Following the acquisition, UGL will hold 99.9998% of the shares in PT Excel, while UPL Europe Limited will retain a 0.0002% stake.

About PT Excel Meg Indo

PT Excel Meg Indo, Indonesia (PT Excel), is based in Jakarta and specialises in buying, importing, and distributing agrochemicals, seeds, fumigants, and fertilisers. For additional information, please refer to Point 10 in the provided table.

About UPL Limited

UPL is a company that manufactures and sells chemicals for agriculture and industries. Based in Mumbai, UPL also provides farmer advisory services, training, and spraying services to make food production more sustainable and tackle common agricultural issues. Founded in 1969, UPL is a leading global player in crop protection products, serving customers in over 130 countries. It is also the largest agrochemical producer in India. UPL offers a range of brands, including Saaf, Doom, Samar, Phoskil, UMet, Sweep, Oorja, Saathil, and more.

On August 28, 2024, UPL Ltd’s share price opened at ₹585.00, touching the day’s low of ₹575.55 as of 09:41 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.