New Delhi, Apr 16 (PTI) DCM Shriram on Thursday said it would sell half of its stake in subsidiary Shriram Polytech Ltd (SPL) to Dutch company Teknor Apex B V for USD 5.6 million, converting the unit into a joint venture.
DCM Shriram's board approved the deal, which is expected to close by April 23, the company said in a regulatory filing.
The transaction will reduce DCM Shriram's ownership in SPL from 100 per cent to 50 per cent, reclassifying the polymer compounds maker as a joint venture rather than a wholly-owned subsidiary.
DCM Shriram said the tie-up would combine SPL's domestic manufacturing capabilities in vinyl compounds with Teknor Apex's global formulation expertise to develop specialty polymer solutions for industrial applications.
Teknor Apex B V is a Netherlands-based unit of US company Teknor Apex Company, with manufacturing operations in Genk, Belgium focused on thermoplastic elastomers for the European Union market.
DCM Shriram said the deal is a part of its strategy to expand advanced materials portfolio and build global partnerships in high-growth sectors.