BASF India mulls sale of polyurethanes subsidiary to BASF

16 April 2009 15:53  [Source: ICIS news]

NEW DELHI (ICIS news)--BASF India Ltd is considering selling its wholly owned subsidiary, BASF Polyurethanes India Ltd, to BASF, its German parent, BASF India said on Thursday.     

In a brief disclosure, the company said BASF had communicated its intent to acquire BASF Polyurethanes “subject to certain conditions” in 2008-2009.

BASF India said it “is in the process of assessing the feasibility of the conditions”, without elaborating.

BASF has exercised its discretion to acquire the Indian polyurethanes subsidiary in accordance with an agreement it signed with BASF India in July 2006. 

Under the agreement, if no synergy developed between BASF India and BASF Polyurethanes, the latter would be transferred to BASF.

The agreement envisaged that BASF Polyurethanes would be sold to its German parent or its affiliates after independent valuation of the polyurethanes subsidiary’s shares.

In July 2006, BASF India had transferred its business that dealt with the importing and marketing of polyurethane system products to BASF Polyurethanes, which was incorporated in April 2005.

BASF Polyurethanes operates a system house for the production of polyurethane products at Navi Mumbai, in Maharashtra state.

BASF India, which is listed on the Mumbai Stock Exchange, is 71.8% owned by BASF. The remaining shares are held by different investors.

The company produces polystyrene, leather chemicals and auxiliaries, specialty chemicals, intermediates and pesticides.

The BASF group’s other companies in India are BASF Coatings Private Ltd and BASF Styrenics Private Ltd, BASF Construction Chemicals (India) Private Ltd, BASF Catalyst India Private Ltd and BASF Asia Pacific (India) Private Ltd.

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By: Naresh Minocha
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