Diversified firm Max India
on Monday said it will sell its packaging material making division, Max Speciality Films
, to Germany's Treofan for Rs 540 crore.
The company's board on Monday approved divestment of its profitable Biaxially Oriented Polypropylene (BOPP) Film division, Max Speciality Films (MSF), to Treofan, a German global technology leader for BOPP film, Max India said.
"Treofan, which develops and sells BOPP films in over 90 countries around the world already has production facilities in Europe and the Americas, and has offered an enterprise value of Rs 540 crore to acquire 100 per cent stake in Max Speciality Films," it added.
MSF, which has BOPP capacity of nearly 50,000 tonnes per annum (TPA), manufactures speciality BOPP films, including multilayer white opaque films, ultra high barrier metalised plain films and leather finishing foils.
"..It was an emotional decision for me personally, but the Board and Management rightly decided that it made good business sense to focus on our portfolio of service oriented businesses of life," Max India Ltd Chairman Analjit Singh said.
MSF's products are used by leading players in food packaging, overwrapping, consumer products, labels and textile industries.
"For Max India, this divestiture will allow us to focus on our synergistic service focused businesses of life and the additional funds will provide us several options to invest in our growth," Max India Managing Director Rahul Khosla said.
Max said the offer from Treofan is subject to various conditions including financing, a material adverse change clause and confirmatory due diligence.
Max India Ltd is engaged in various business verticals including insurance, healthcare and contract research.
Shares of Max India on Monday closed at Rs 190.35 apiece on the BSE, up 3.54 per cent from its previous close.