Indo Borax & Chemicals Ltd is set to acquire a 64.26% controlling stake in Vadodara-based Kronox Lab Sciences Ltd from the company’s promoters for approximately ₹246 crore. In addition, Indo Borax plans to launch an open offer to acquire up to 25.79% more equity from public shareholders. The transaction will make Indo Borax the new promoter of Kronox Lab Sciences and result in a significant change in the company’s management and control.
Indo Borax to Launch Mandatory Open Offer
As the acquisition will result in a change in control, Indo Borax will make a mandatory open offer to Kronox Lab Sciences’ public shareholders in accordance with applicable takeover regulations. Indo Borax, along with Zenrock Chemicals Private Ltd, acting as a person acting in concert, will offer to acquire up to 95.7 lakh shares, representing 25.79% of Kronox’s equity share capital. If the open offer receives full acceptance, the combined shareholding of Indo Borax and Zenrock Chemicals could increase further, strengthening their control over Kronox Lab Sciences.
New Board to Take Charge After Acquisition
The transaction will also bring significant changes to Kronox Lab Sciences’ board and management structure. Following the completion of the acquisition, Indo Borax will appoint three nominee directors to the Kronox board. Meanwhile, the existing promoters will resign from their positions as directors, paving the way for the new management to assume control.
Founders to Support Business Transition
However, the existing promoters will continue to support the company during the transition period. According to the regulatory filing, the sellers will enter into consultancy agreements with Kronox Lab Sciences after the transaction is completed. Through these agreements, the founders will provide transition support and help ensure a smooth handover to the new management.
A Major Ownership Transition for Kronox Lab Sciences
As reported by thehindubusinessline.com, the acquisition marks a significant ownership and management transition for Kronox Lab Sciences. With Indo Borax set to become the new promoter and potentially increase its holding through the open offer, the transaction could reshape the company’s future ownership structure, board composition and strategic direction.
