Hyderabad-based listed firm Nile Ltd is selling its glass-lined equipment and pressure vessels division to De Dietrich Process Systems of France. The sale of the division, which includes all the assets and the liabilities, is being done for a consideration of Rs 58.5 crore, the company has stated in a filing.
The division will be sold to De Dietrich Process Systems India Pvt Ltd on a going concern basis and the payment of Rs 58.5 crore will be made subject to suitable adjustments at the closing of the transaction. The transaction is subject to shareholders’ approval.
The share price of Nile Ltd was up 9.98 per cent on the Bombay Stock Exchange to reach Rs 189.5 per scrip on July 11. The market capitalisation of the company at this price was Rs 56.85 crore.
Nile’s glass lining and pressure vessel division is located at Nacharam Industrial Estate in Hyderabad, spanning a covered area of 8,700 sq. mt. Key clients of this division include Cadila Healthcare, Aurobindo Pharma, Novartis, Cipla and BASF, among others. The glass lining unit has reported revenues of Rs 45.46 crore in FY11, with a profit before tax of Rs 3.72 crore.
Following the sell-off, Nile Ltd will focus on building market position for its lead division and pursue further synergistic opportunities in related areas, added a statement.
For FY11, Nile’s total income has more than doubled, from Rs 144.87 crore to Rs 299.33 crore, while net profits have more than doubled as well, amounting to Rs 7.17 crore.
De Dietrich Process Systems, a firm which has been in business for more than 300 years, is an international provider of system solutions in mechanical and thermal process engineering for the pharmaceutical and chemical industry.