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market | IST

GMM Pfaudler shares jump 8% as company set to acquire majority stake in parent firm

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GMM Pfaudler rose as much as 8.1 percent to its intra-day high of Rs 6,360 per share.

The share price of GMM Pfaudler surged 8 percent on Friday after the company said that it will buy a majority stake in the group’s global business from German private equity firm Deutsche Beteiligungs AG Fund VI (DBAG).
GMM Pfaudler, which supplies process equipment to pharmaceutical and chemical industries, has signed definitive agreements to acquire a majority stake in its parent firm Pfaudler Group for $27.4 million, it said.
"As per the agreements, GMM, directly and through its subsidiary Mavag AG, and the Patel family will acquire 54 percent and 26 percent equity stake, respectively, in the Pfaudler Group," the company said in a statement.
GMM Pfaudler rose as much as 8.1 percent to its intra-day high of Rs 6,360 per share on the news.
Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the company. Subject to the satisfaction of certain closing conditions and regulatory approvals, the transaction is expected to close in November this year, the company said.
"Over the past five years, we have shown an unparalleled track record of growth at GMM and it is now time to take our company to the next level through this acquisition," GMM Managing Director Tarak Patel said.