France’s chemicals producer Arkema SA has acquired 24.9 per cent stake in a JV with Jayant Agro Organics Ltd, a Mumbai-based castor oil producer. The joint venture will manufacture and sell industrial and specialty grade castor oil products. Arkema will hold 25 per cent stake in the JV called Ihsedu Agrochem Pvt Ltd (IAPL).
Arkema is picking up the stake for Rs 27.9 crore, the BSE was informed in a disclosure. Jayant Agro now holds 75.1 per cent of the total paid up equity share capital of IAPL. As part of the investment, Arkema Asie SAS has appointed two directors on the board of IAPL.
The announcement was made in April this year, but the deal size was not disclosed then.
After forming this separate venture, public-listed Jayant Agro will only focus on producing and marketing value-added castor oil products. BMR Advisors acted as the advisor to Jayant Agro Group on this deal while J Sagar Associates acted as the legal advisor to the group.
Read more: http://in.reuters.com/article/2013/10/14/french-firm-arkema-picks-up-25-pct-stake-idINDEE99D06L20131014
Jayant Agro Organics Ltd, an Indian oleochemical company, have entered into a joint venture agreement with two Japanese firms – Mitsui Chemicals Inc and Itoh Oil Chemicals Co Ltd – for manufacturing castor oil based polyols. The firms are investing in the equity shares of Vithal Castor Polyols Pvt Ltd in the ratio 50:40:10 respectively.
This is a second deal announced by Jayant Agro Organics this year. In April 2013, Jayant Agro entered into an agreement with Arkema, a French chemical company, to form a strategic joint venture through its subsidiary Ihsedu Agrochem Pvt Ltd (Ihsedu). According to the JV agreement, Arkema will acquire around 25% equity stake in Ihsedu. The JV aims to develop castor oil production, which will provide Arkema long term, secure and competitive access to the strategic raw material for the manufacture of its bio-sourced polyamides.
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