Last week, Tega Industries announced that it has approved a term sheet to acquire global mining consumables giant Molycop in partnership with Apollo Funds, in a deal valued at around $1.5 billion.
The company said the acquisition would be executed via a special purpose vehicle, jointly formed by Tega and Apollo Funds, with the consortium purchasing 100% of AIP MC Holdings LLC and its subsidiaries that operate under the Molycop brand.
The company later told CNBC-TV18 that it is confident it can meaningfully lift group profitability via its Molycop acquisition, but margin expansion will take time and integration risks remain.“We expect the acquisition to be earnings accretive between the second and third year,” Tega Industries MD and Group CEO Mehul Mohanka told CNBC-TV18 on September 11.
On another note, Plutus Wealth Management LLP bought 5.15 lakh shares of Tega Industries at 1,963.2 apiece on Friday.
Shares of Tega Industries were trading 0.8% higher at ₹2,031.5 apiece around 9.30 am on Monday. The stock has gained 9.6% in the past month and 50.3% in the last six months.
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