DCM Shriram sells 50 pc stake in polymer unit to Dutch firm for USD 5.6 mn

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.

(This story has not been edited by THE WEEK and is auto-generated from PTI)