Ester Industries Ltd announces slump sale of Engineering Plastics Business

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The Board of Directors of Ester Industries Limited at its meeting held today i.e. 6th May, 2022, has considered and approved, subject to the approval of shareholders, lenders and other necessary approvals, to transfer its Engineering Plastics Business by way of slump sale as a ‘going concern’ to Radici Plastics India Private Limited (Buyer). The Company has signed and entered into a Business Transfer Agreement with the Buyer.

The buyer is a subsidiary of Radici Novacips Spa, Italy, part of Radici Group, Italy and one of the world’s leading producers of a wide range of chemical intermediates, polyamide polymers, high performance engineering polymers and advanced textile solutions.

Turnover of Engineering Plastics (EP) Business during financial year 2020-21 was Rs. 205 Crores . Ester Industries Limited (the Company) has multiple business segment therefore it is not possible to calculate Net worth attributable to EP Business.

The consideration to be received for the above sale is Rs. 289.33 Crores (Rs. Two Hundred Eighty Nine Crores and Thirty Three Lacs) subject to the adjustments specified in the BTA and other agreements executed or to be executed by the Company and the Buver.