Fine Organic Industries Limited has executed Share Transfer Agreements to acquire an 80% equity stake in Oleofine Organics SDN. BHD. (OFM), a Malaysian company specializing in specialty chemicals. This strategic acquisition, announced on September 2, 2026, aligns with Fine Organic’s growth strategy and is expected to bolster its presence in the specialty chemicals market. The transaction is on an arm’s length basis.
Strategic Acquisition in Specialty Chemicals
Fine Organic Industries Limited announced today, September 2, 2026, that it has entered into Share Transfer Agreements (STAs) to acquire a significant 80% equity stake in Oleofine Organics SDN. BHD. (OFM). OFM is a company incorporated in Malaysia and is actively engaged in the business of specialty chemicals.
Deal Rationale and Structure
This acquisition is a key part of Fine Organic Industries’ overall growth strategy. The business of OFM falls within the main business line of the acquiring company, ensuring synergistic integration. The transaction is structured to be conducted on an arm’s length basis. Of the total 80% stake, 50% will be acquired from Smoothex Chemicals Private Limited, an entity within the Promoter Group of Fine Organic Industries and an existing shareholder of OFM. The remaining 30% will be acquired from other unrelated existing shareholders of OFM.
Target Entity Profile
Oleofine Organics SDN. BHD. has a paid-up share capital of 10,00,000 Malaysian Ringgit (RM), divided into 10,00,000 Equity Shares of RM 1 each. For the financial year ended January 31, 2026, OFM reported a turnover of RM 23,287,742, equivalent to approximately INR 54.17 crores. The company was incorporated on August 19, 1988. As of January 31, 2026, OFM’s net worth stood at RM 3,42,45,075, approximately INR 79.65 crores.
Financials and Consideration
The aggregate cost of this acquisition is expected to be up to RM 3,42,08,000, approximately INR 80.28 crores, subject to exchange rate variations and applicable transaction costs. The details provided are based on the exchange rate prevailing on the date of the announcement, with further adjustments to be made on the actual transaction date.
Source: BSE
