Neogen Chemicals Limited has announced the approval of a Business Transfer Agreement (BTA) for the sale and transfer of an undertaking/assets by its wholly-owned subsidiary, Neogen Ionics Limited (NIL), to its step-down wholly-owned subsidiary, Neogen Morita New Materials Limited (NML). The transaction is valued at a lumpsum consideration of ₹245 Crore, aiming to consolidate the company’s Electrolyte Salt (LiPF6) businesses under NML.
Neogen Chemicals Approves Key Subsidiary Transaction
Neogen Chemicals Limited has formally announced the approval of a significant business transfer agreement. The company’s Board of Directors, along with its wholly-owned subsidiary, Neogen Ionics Limited (NIL), and NIL’s step-down wholly-owned subsidiary, Neogen Morita New Materials Limited (NML), have greenlit the execution of a Business Transfer Agreement (BTA).
Asset Transfer Details
Under this BTA, NIL will sell or transfer its undertaking or assets to NML on a going concern basis. The transaction is valued at a lumpsum consideration of ₹245 Crore. This deal is subject to the necessary approvals from NIL’s shareholders, which have already been granted, and any other regulatory approvals that may be required.
Strategic Rationale and Consolidation
The primary rationale behind this transfer is Neogen’s strategic initiative to consolidate its Electrolyte Salt (LiPF6) businesses under NML. This move is expected to streamline operations and potentially enhance efficiencies within this specific business segment. The transaction is anticipated to be completed on or before March 31, 2027.
Financial and Operational Aspects
As per the disclosure, the undertaking being transferred contributed 0% of the consolidated revenue of the Company and NIL for the year ended March 31, 2026. However, its net worth as of March 31, 2026, was ₹155.52 Crore, representing 19.05% of the consolidated net worth of the Company and 57.36% of NIL’s consolidated net worth. The consideration of ₹245 Crore is to be received on or before March 31, 2027. The transaction falls under related party transactions, specifically between a wholly-owned subsidiary and its step-down wholly-owned subsidiary, and has been conducted on an arm’s length basis.
Source: BSE
