Leading paper company JK Paper will fully acquire the Karnataka-based Manipal Utility Packaging Solutions Pvt Ltd (MUPSPL) for nearly Rs 90 crore. The company entered into a share purchase agreement (SPA) for the acquisition of 100 percent shares of MUPSPL, JK Paper said in a regulatory filing.
The shares of JK Paper were up 1% to Rs 400.80 in the early trade on October 17 after the company’s board approved the acquisition.
Under the agreement, JK Paper will acquire 4.07 crore equity shares representing 100% of the capital of MUPSPL at Rs 21.80 per equity share of Rs 10 each, subject to adjustments as per terms of the agreement, it added.
The acquisition is expected to be completed within six weeks of the execution of the SPA with the target entity and its promoters/shareholders, subject to fulfillment of conditions mentioned in the SPA, the company said. No governmental or regulatory approvals are required for the said acquisition of shares, which will be done for cash consideration, media reports said.
JK Paper vice chairman and managing director Harsh Pati Singhania said, “This acquisition is in line with the long-term strategic objective of the company in the packaging business and allows us to offer combined solutions to the customers concerning secondary and tertiary packaging, improve operational efficiencies and ensure that MUPSPL grows and adds value to stakeholders.”
MUPSPL is in the business of manufacturing packaging products such as folding cartons, corrugated boxes, and labels with four manufacturing plants across India. It had a revenue of Rs 147.77 crore in FY 2022-23, the company said.
The packaging business is amongst the fastest growing segments in the Indian paper and packaging industry driven by growth in end-use industries such as food and beverage, and FMCG, it added.
