Pennar Industries Limited (BSE:513228) entered into a scheme of amalgamation to acquire the remaining 46.02% stake in Pennar Engineered Building Systems Limited (BSE:539333) from a group of sellers for INR 1.9 billion on November 10, 2017. Under the terms, Pennar Industries will issue 23 shares for every 13 shares of Pennar Engineered Building Systems. Pennar Industries currently holds 18.5 million shares (53.98% stake) of Pennar Engineered Building Systems. In a related transaction, Pennar Industries entered into scheme of amalgamation to acquire remaining 48.97% stake in Pennar Enviro Limited. Pennar Engineered Building Systems will be dissolved on closing.

Upon scheme becoming effective, all employees of Pennar Engineered Building Systems Limited shall become the employees of Pennar Industries Limited, on terms and conditions not less favorable than those on which they are engaged by Pennar Engineered Building Systems Limited and without any interruption of or break in service. The transaction is subject to statutory and regulatory approval including approvals from National Company Law Tribunal, Securities Exchange Board of India, and Stock Exchanges; the respective shareholders of Pennar Industries and Pennar Engineered Building Systems, approval by the requisite majorities of the respective members and/or creditors (where applicable) of Pennar Industries and Pennar Engineered Building Systems and other customary conditions. The transaction was unanimously approved by the Board of Directors of Pennar Engineered Building Systems and Pennar Industries on November 10, 2017. On April 26, 2018, BSE Limited and National Stock Exchange of India Limited issued no-objection letters in respect of the transaction. On May 3, 2018, National Stock Exchange of India Limited approved Pennar Industries to file an application for getting approval from the National Company Law Tribunal. The application for approval was filed with the Hyderabad bench of the National Company Law Tribunal. On December 14, 2018, the transaction was approved by the shareholders of Pennar Industries Limited and Pennar Engineered Building Systems Limited. On May 10, 2019, the transaction is approved by National Company Law Tribunal, Hyderabad.

Huned Contractor of Walker Chandiok & Co LLP acted as an independent valuer and Nipun Lodha of Keynote Corporate Services Limited acted as a fairness opinion provider to Pennar Industries Limited and Pennar Engineered Building Systems Limited. M/s. Deloitte Haskins & Sells acted as an accountant to Pennar Industries Limited.

Pennar Industries Limited (BSE:513228) cancelled the acquisition of remaining 46.02% stake in Pennar Engineered Building Systems Limited (BSE:539333) from a group of sellers on November 10, 2019.