UPL, an agriculture chemical company, has sold 49.98 per cent stake in non-operational subsidiary Agri Net Solutions (ANSL) to the promoter’s group company Nerka Chemicals for consideration of ₹1.75 crore.
Post the transaction ANSL will cease to be the subsidiary of UPL. The balance shareholding in ANSL is held by the promoters, said UPL in a statement on Thursday.
The transaction is expected to be completed by end of this month.
Agri Net Solutions did not register any turnover last fiscal and its net-worth was ₹3.42 crore, accounting for 0.01 per cent of the consolidated networth of UPL.
The valuation is based on audit done by an independent CA firm and termed as related party transaction as ANSL is a subsidiary and the acquirer is a promoter group entity.
The sale of shares shall be at arm’s length based on certification from an Independent Chartered Accountant, it said.