India’s Apollo Micro Systems will acquire a 41.33% stake in defence equipment maker Premier Explosives for 15.5 billion rupees ($162.50 million), the companies said on Thursday.
Per India’s takeover regulations, Apollo Micro Systems will also offer to buy up to an additional 26% stake in Premier Explosives from public shareholders at 698 rupees per share.
Consolidations have risen in India’s fast-growing defence manufacturing sector, which has benefited from increased government spending and a push for local production.
The deal, expected to complete within five months, is subject to regulatory approvals, including clearance from the Competition Commission of India.
Premier Explosives, which manufactures high-energy materials, rocket motors, countermeasures and munitions for the defence and aerospace sectors, will continue to operate under its existing brand after the acquisition.
Apollo Micro said the acquisition combines the companies’ defence systems and energetic materials capabilities, helping expand their participation in defence and space programmes.
($1 = 95.3875 Indian rupees)
Reuters
