An evaluation of a potential merger of SLL with Bajaj Electricals is also being commenced by the company’s board of directors
Bajaj Electricals announced that it has acquired the remaining stakes of Starlite Lighting Ltd for Rs 60 crore from its promoters.
In an all-cash deal, Bajaj Electricals said, “In consideration of the said relinquishment and transfer of joint Control and Management Rights of SLL by Outgoing Promoters in favour of the company, the company will pay an aggregate control premium of Rs 14.80 crore, plus GST as applicable, to the Outgoing Promoters, subject to the terms and conditions of the said CTA,” it said.
Additionally, the company has also entered into a share subscription agreement for buying 45 lakh equity shares of SLL at a price of Rs 10 per piece, subscribing shares worth Rs 45 crore from the promoters.
An evaluation of a potential merger of SLL with Bajaj Electricals is also being commenced by the company’s board of directors, which approved the acquisition contract recently.
“Further, SLL has now become a subsidiary of the Company,” the company said.
Starlite Lighting Ltd (SLL), which registered a turnover of Rs 172.90 crore in FY 2019-20, was a joint venture engaged in the business of manufacturing different consumer electrical products, including lighting products like compact fluorescent lamps (CFLs) and light-emitting diode (LED) and consumer electrical appliances.