Japanese firm YKK AP is acquiring the aluminium extrusions business of Bhoruka Aluminium (BAL) through its Singapore-headquartered holding company YKK Holdings Asia for $22.29 million.
This indicates BAL's efforts to pay debts after it become a non-performing asset (NPA) to State Bank of India. The firm borrowed heavily at the peak of 2007-08 to build a plant at Metagalli in Mysore, Karnataka. The economic crisis and the subsequent crash in the Indian construction market saw the company finding it tough to service the debt.
Lenders initiated restructuring exercise to sell the assets of the company and recover their dues in 2011.
Singhi Advisors acted as the sole advisors to the transaction.
Established in 1979, Karnataka-based Bhoruka Aluminium engages in manufacturing and process of aluminum extrusions. The company offers its aluminum sections and extrusions to industrial, transportation, building and construction, electrical and electronics, interiors, and solar applications. In 2010, the firm was planning to raise funds for its expansion plans.
YKK Holding Asia Pte Ltd. manufactures and markets fastening and architectural products including remote control automated shutter, screen partition sliding door, entranceway and net screen. The company was founded in 1991. YKK Holding Asia Pte Ltd operates as a subsidiary of YKK Corporation.
(Edited by Prem Udayabhanu)
