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Finland-headquartered packaging MNC Huhtamaki will be acquiring Indian company Positive Packaging for ₹818 crore in a bid to increase its footprint in Indian, West Asia and Africa markets.
India-based Positive Packaging is part of the Enpee Group and has six plants in India and three in the United Arab Emirates.
Post acquisition, this business will become part of Huhtamaki's Flexible Packaging business segment.
In a filing with the BSE, the listed Indian arm of Huhtamaki called Huhtamaki PPL (formerly called Paper Products) company said: “The transaction is subject to statutory approvals including CCI and RBI clearance before closure and is expected to close by Q4 of 2014.”
The company proposes to fund the acquisition through internal accruals and issue of about one crore equity shares of ₹2 each to the Huhtamaki Group on a preferential basis at a price of ₹134.08 a share aggregating to ₹134 crore and issue of non- convertible debentures up to ₹820 crore on private placement basis as determined by the board.
The company would be tabling this proposal for approval of its members at board meeting on August 6.
Huhtamaki said Positive Packaging has an annual turnover of ₹1,000 crore and employs about 2,500 staff in India and the United Arab Emirates.
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