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Swan Energy Limited (SEL) has acquired Veritas (India) Limited, a chemical, petrochemicals and petroleum products manufacturing company with a global presence.
As a part of the all-cash deal, SEL has acquired 55 per cent of the fully diluted equity share capital from the existing promoters and promoter group of Veritas (India) by purchasing 1,47,45,720 equity shares at a price of ₹117 per share, aggregating to ₹172.52 crore.
SEL will acquire an additional 26 per cent stake from the existing public shareholders of Veritas (India) via a mandatory open offer at a price of ₹126 per share, aggregating ₹87.83 crore. The total value of the transaction will be ₹260.35 crore.
The total net worth of Veritas (India) Limited is ₹1,973.63 crore. The acquisition strengthens the synergy of SEL in the oil and gas sector.
Commenting on the acquisition, Rishi Chopra, Swan Energy Limited (SEL) spokesperson said, “ The acquisition is in line with our strategy to diversify our geographical reach and businesses to gas and petrochemicals sectors. The acquisition will help us leverage Veritas (India) Limited’s sectoral connect to acquire gas for the second phase of expansion of our LNG complex. We are pleased to welcome Veritas (India) Limited to the SEL family. The acquisition underlines our vision to work towards a better tomorrow for our country. The operational expertise and globally integrated systems, processes and governance will create a great synergy for us and accelerate our journey to the next phase of growth.”
Swan Energy Limited had started with textile business, but, over the past three decades, the company has expanded into the real estate, and oil and gas industries. The company has set up A 5 MMTPA FSRU-based LNG terminal in Jafrabad which will commence commercial operations soon. SEL has also increased its certified, state-of-the-art fabric processing capacity at its textile unit to 30 lakh metres a month based in Ahmedabad, Gujarat.
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