Agro-chemicals major UPL Ltd, formerly known as United Phosphorus Ltd, has increased its shareholding in Brazilian firm UPL do Brasil from 51 per cent to 73 per cent through its step down wholly-owned subsidiary, it said in a statement.
Remaining 27 per cent is held by the existing shareholders. Financial details of the acquisition were not disclosed but UPL said the transaction involves fresh issue of shares.
UPL do Brasil is engaged in the production, marketing, distribution and selling of crop protection products and specialities in the Brazilian agro-chemical market. It has a formulation plant in Brazil and is undergoing expansion.
Earlier in 2011, UPL Ltd had acquired a 51 per cent stake in UPL do Brasil, then known as DVA Agro Do Brasil, from Germany’s DVA Group and other shareholders for $150 million. If that is taken as a benchmark the latest deal could be north of $60 million.
The acquisition was the second by the Mumbai-based company in the Brazilian market after it acquired 50 per cent stake in Sipcam Isagro Brazil, a 50:50 Joint venture between Sipcam-Oxon group(Sipcam) and Isagro, in March same year.
In the October-December quarter of the ongoing financial year, UPL saw a 15.3 per cent rise in revenues to Rs 2,647 crore with a net profit of Rs 222 crore, up 28 per cent over the year-ago period.
Shares of UPL Ltd Tuesday closed at Rs 182.45 a unit, up 0.5 per cent on the BSE in a strong Mumbai market.
(Edited by Joby Puthuparampil Johnson)