New Delhi Swan Energy Limited (SEL), with interests in oil and gas and infrastructure businesses, acquired a 55% stake in petrochemicals and petroleum products maker Veritas (India). 172.52 crores.
The company said in a statement that its board of directors has approved the acquisition.
As a part of the all-cash deal, Swan Energy has acquired 55% FII diluted equity share capital by buying 1,47,45,720 equity shares from the existing promoters and the promoter group of Veritas (India) Limited at a price of Rs. , 117 per share totaling Rs. 172.52 crores.
Swan Energy will acquire an additional 26 per cent stake from existing public shareholders of Veritas (India) through a mandatory open offer. 126 per share aggregate 87.83 crores.
With this, the total value of the transaction will be 260.35 crores.
The transaction is expected to be completed within six months, Swan Energy said in a regulatory filing.
Swan Energy spokesperson Rishi Chopra said: “The acquisition is in line with our geographic reach and our strategy to diversify businesses into the gas and petrochemicals sectors. The acquisition will allow Veritas to acquire gas for the second phase of the expansion of our LNG complex. (India) Limited’s regional connectivity will help.”
Veritas (India) Group is a group company of Veritas (GV), a diversified multinational business conglomerate with core business domains such as international trade and distribution, infrastructure and logistics, alternative fuels and energy.
Its core business domains also include polyvinyl chloride (PVC) and bitumen production. In addition to its global presence, it also has a terminal in Hamariyah, United Arab Emirates with a capacity of 170,000 metric tons.
The net worth of Veritas (India) is 1,973.63 crores. The acquisition will strengthen Swan Energy’s synergy in the oil and gas sector, as SEL is in the LNG sector and Veritas (India) Ltd. in the gas and petrochemical industry, the statement said.
In FY21, the company reported revenue of 1,880.53 crores. The market capitalization of Veritas is currently 306.04 crores.
Mumbai-based Swan Energy, which started its journey in the textile business, has expanded and successfully ventured into the real estate and oil and gas industries.
The company has set up a 5 Million Metric Tonne Per Annum (MMTPA) Floating Storage and Regasification Unit-based LNG terminal at Jaffrabad which will start commercial operations soon.
The market capitalization of Swan Energy is 7,678.67 crores.