Agro-chemical firm UPL Ltd on Friday said it will integrate Indian and international crop protection businesses into a single entity as it seeks to create a focused pure-play platform for growth of this business globally while simplifying group structure.
In a regulatory filing, UPL informed that its board approved a composite scheme of arrangement amongst itself, UPL Sustainable Agri Solutions Ltd (UPL SAS), UPL Global Sustainable Agri Solutions Ltd (UPL 2), UPL Crop Protection Holdings Ltd (UPL Cayman) and their respective shareholders.
"The scheme proposes to consolidate the India crop protection business held in UPL SAS and the global crop protection business held in UPL Cayman, under a single entity, creating a focused, pure-play crop protection platform," UPL said, adding that the scheme will simplify the group structure and unlock shareholders value.
As per the scheme, UPL SAS will be merged with the UPL in the first step.
Then, demerger of the demerged undertaking relating to the India Crop Protection Business from UPL to UPL 2. Lastly, there would be amalgamation of UPL Cayman with and into UPL 2.
The UPL 2 will be listed on the Indian stock exchanges. The process is expected to be completed in the next 12-18 months.
UPL has approved the "integration of the India-specific crop protection business and the international crop protection business into UPL 2 resulting in a single, unified platform for the crop protection business operating at the global level."
This integrated business will benefit from a strong manufacturing base, advanced research capabilities, a broad portfolio of registered products and brands across multiple geographies and independent management, UPL said.
After completion of the steps contemplated in the scheme, there would be two listed companies in the UPL Group.
UPL Ltd will continue to be listed and operate as a diversified platform encompassing agro and specialty chemical businesses, while also incubating and developing new businesses and verticals. The dedicated crop protection platform UPL 2 will be listed.
On the rational of this scheme, UPL said that "this will enable clearer value discovery by providing flexibility to the investors to select investments which best suit their investment strategies and risk profile."
The scheme will allow the UPL and UPL 2 to raise capital independently, allowing each entity to optimise its capital structure and pursue business opportunities more efficiently and effectively, it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
