BENGALURU: Max Ventures & Industries Ltd (MaxVIL), a holding company of Max Group, said it has entered into a definitive agreement with its existing Japanese partner, Toppan Inc., in Max Specialty Films Ltd (MSF), to divest its remaining 51% stake (in two tranches) in the specialty packaging films business for an enterprise valuation of ₹1,350 crore.
Toppan will also take over the debt of MSFL as part of the deal.
MaxVIL operates across two businesses – real estate in National Capital Region (NCR) and specialty packaging films business. It has now decided to exit its non-core businesses. Post the exit, the company will focus on its real estate business in the premium residential and commercial space in Delhi-NCR.
After the acquisition of 49% stake in 2017 for about ₹200 crore, Toppan became a strategic partner of MaxVIL.
The company will also change its name from MaxVIL to Max Estates Ltd.
“The Board of Directors have authorised the Investment and Finance Committee of the Board to explore various modalities for restructuring with its wholly owned subsidiary Max Estates Limited and be renamed as Max Estates Limited after receiving required statutory approvals. The change of name will bring better synergies between the name and the operations of the company,” the company said in a regulatory filing late on Sunday.
The exit from the packaging business, at a valuation of more than 3 times to the 49% stake sale in 2017, coincides with the company’s best performance since its inception.
After the divestment, the company will have war-chest of more than ₹1,000 crore funded from sale proceeds, internal accruals, and potential commitment from financial investors. This will help it expand its residential and commercial real estate footprint in Delhi-NCR.
New York Life Insurance Company, a longstanding partner of the group, is a strategic investor in the company, owning about 23% stake. It has also invested at the project level through SPVs (Special Purpose Vehicles) route by picking up a 49% stake in Max Square, a commercial project on the Noida-Greater Noida Expressway. The company will continue to look for such strategic/financial partners to back its expansion plans.
MaxVIL is in advance discussions with nearly half a dozen landowners to acquire and develop prime land parcels in Delhi-NCR.
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