Manali Petrochemicals Limited has announced its decision to sell its UK-based subsidiary, Notedome Ltd, to Chimica Organica Industriale Milanese (COIM), an Italian specialty chemicals company. Manali Petrochemicals will execute the sale at a value of at least 8.5 times Notedome’s adjusted EBITDA of £2.12 million, on a cash-free and debt-free basis with customary adjustments. The Board of Directors of Manali Petrochemicals approved the divestment during a meeting on Thursday, marking a significant strategic shift for the Chennai-headquartered company.
Details of the Transaction
AMCHEM SG, MPL’s overseas wholly owned subsidiary, will sell its entire stake in Notedome Ltd to COIM S.p.A., subject to shareholder approval.
A binding Share Purchase Agreement (SPA) will soon be executed between both parties, finalizing the terms of the sale. Following completion, Notedome Ltd and its subsidiary will cease to be part of AMCHEM SG and will no longer remain a step-down subsidiary of Manali Petrochemicals Limited. This sale ensures a substantial return for MPL and underscores the company’s intent to restructure its global operations for sharper focus and improved profitability.
Impact on Financial Performance
Notedome Ltd currently contributes over 10% to Manali Petrochemicals’ consolidated revenue of ₹9.21 crore for FY 2024–25 and about 5.57% to its net worth of ₹10.95 crore. The divestment will significantly impact these financial indicators once the transaction is completed. While the company has not disclosed further financial specifics, MPL expects the sale to free up resources and redeploy capital into core business areas with higher growth potential.
Focusing on Core Strengths
Headquartered in Chennai, Manali Petrochemicals operates chemical manufacturing facilities in Manali and continues to pursue a long-term growth strategy centered around core competency, operational efficiency, and portfolio optimization. This divestment aligns with MPL’s broader objective of streamlining its business portfolio. It enhances shareholder value, and focusing on sustainable growth in its primary markets.
Strengthening Financial Discipline and Growth Vision
By exiting non-core overseas operations, Manali Petrochemicals is reinforcing its financial discipline and commitment to operational excellence. As reported by goodreturns.in, the sale of Notedome Ltd marks a strategic move to consolidate domestic operations. It also helps the company stay agile to pursue new investment opportunities aligned with its growth vision.
