Gurugram (Haryana) [India], January 18 (ANI/PRNewswire): HSIL Limited ("HSIL"), India's leading packaging company, in its Board meeting held today approved the divestment of its Building Products division to Brilloca Limited ("Brilloca"), a wholly owned subsidiary of Somany Home Innovation Limited ("SHIL") in a slump sale transaction for a cash consideration of Rs 630 crore.
With the proposed transaction, the Building Products division's entire operating facilities of HSIL will be transferred to Brilloca.
Cash proceeds of Rs 630 crore will be utilized towards the pre-payment of existing bank borrowings which will further strengthen the HSIL balance sheet and create capital to further expand its packaging business
Going forward, HSIL will completely focus on the expansion of its packaging business and capitalize on both organic and inorganic opportunities
E&Y acted as the structuring advisor and Deloitte as the independent valuer.
The transaction is subject to shareholder and other statutory approvals as applicable. The transaction is expected to close by 31st March 2022 or such date as mutually agreed between HSIL and Brilloca.
Commenting on the transaction, Dr. Rajendra Kumar Somany, Chairman and Managing Director, HSIL: "This transaction will have a transformative impact on the market positing and growth prospects of HSIL. The company will emerge as a focused packaging company, well-positioned to implement its strategic plans to drive the packaging business and continue to unlock value for all stakeholders. The cash proceeds will be used to pre-pay existing bank borrowings and increase cash reserves."
HSIL Limited is India's leading Packaging Products Company that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures. Packaging Products Division has six plants in India, located across Telangana, Uttarakhand, and Karnataka. This Division has a comprehensive product range, catering to 500+ globally acclaimed institutional clients in India.
This release contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to HSIL Limited's future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. HSIL Limited undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.
Meenakshi Oberoi, Head Corporate Communications, +91-9860569994, email@example.com, Ravi Gothwal / Vikas Luhach, Churchgate Partners, Investor Relations, +91 22 6169 5988, HSIL@churchgatepartners.com
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