Wadia Group’s Bombay Burmah Trading Corporation Ltd is selling its Sunmica unit to Japan’s AICA Kogyo Ltd for Rs 100.30 crore, the company has said in a filing today. The transaction, which is being done on a slump sale basis, will see the unit being acquired by the Japanese firm’s India arm AICA Laminates India Pvt Ltd.
“The decision to sell the Sunmica division is in line with the restructuring plan to focus on core business and divest low-return businesses,” said Bombay Burmah Trading, in which the Nusli Wadia-led group holds 66 per cent stake.
The transaction will primarily include the transfer of the ‘Sunmica’ brand and other related intellectual properties, manufacturing facility at Rudrapur (Uttrakhand), distribution network and the employees relating to the business. The transaction is subject to shareholders’ approval and other regulatory approvals.
The unit is currently engaged in the business of manufacturing and marketing decoratives and industrial laminates. Its head office is in Pune and the registered office is located in Mumbai. It has customers in the Middle East, Western Europe, South-East Asia and Africa.
The share price of Bombay Burmah Trading Corporation closed at Rs 452.2, up 4.64 per cent from its previous close on the BSE. Singhi Advisors were the sole financial advisors to BBTCL for this transaction.
Post-acquisition, AICA plans to inject its technology prowess into Sunmica to foster greater diversification, higher quality and functionality, while seeking sales expansion in India by leveraging Sunmica’s sales network.
AICA Kogyo Ltd was established in 1936 and is listed on Tokyo and Nagoya Stock Exchanges. It operates in four business segments – chemical products, construction material, housing construction material & equipment and electronics.