Astec LifeSciences to merge with Temasek-backed parent Godrej Agrovet
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Astec LifeSciences to merge with Temasek-backed parent Godrej Agrovet

By Keshav Sunkara

  • 14 Sep 2018
Astec LifeSciences to merge with Temasek-backed parent Godrej Agrovet
Credit: Manni Das/VCCircle

Godrej Agrovet Ltd and unit Astec Lifesciences Ltd said on Friday they will merge in an all-stock transaction aimed at simplifying the management structure and optimizing the use of resources.

Astec shareholders will get 11 shares of Godrej Agrovet for every 10 shares held, the companies said in a stock exchange disclosure.

Godrej Agrovet shares gained 1.8% to close at Rs 587.65 apiece on Friday while Astec shares jumped 5.2% to end at Rs 621.65 apiece on the BSE, where the benchmark Sensex rose 1%.

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The scheme is subject to approval by shareholders and statutory bodies.

The promoter shareholding in Godrej Agrovet will fall to 65.66% from 68.79% after the merger. The stake of Singapore state investment firm Temasek, which first backed Godrej Agrovet about six years ago, will also fall from 12.87% at the end of June.

Godrej Agrovet holds a 57.39% stake in Astec LifeSciences, which mainly makes active ingredients and intermediates for agrochemicals. The Godrej Group company had first acquired a stake in Astec in August 2015 and increased its holding later that year.

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Astec’s consolidated revenue from operations stood at Rs 370.85 crore in the year through March 2018, up from Rs 313.40 crore in the previous financial year.

Godrej Agrovet, the agri-business subsidiary of Godrej Industries Ltd, has operations across five business verticals. These include animal feed, crop protection, oil palm, dairy, and, poultry and processed foods.

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