Swan Energy acquires 55% stake in Veritas India

Mumbai: Swan Energy Limited (SEL) has acquired 55% stake in petrochemicals and petroleum products manufacturing company Veritas (India) for Rs 172.52 crore, the company said today.

"As a part of the all-cash deal, SEL has acquired 55% of the fully diluted equity share capital from the existing promoters and promoter group of Veritas (India) Limited by purchasing 1,47,45,720 equity shares at a price of Rs. 117 per share, aggregating to Rs. 172.52 crore," the company said.

SEL will acquire an additional 26% stake from the existing public shareholders of Veritas via mandatory open offer at a price of Rs. 126 per share, aggregating Rs. 87.83 crore.

The total value of the transaction will be Rs 260.35 crore.

Rishi Chopra, Swan Energy Limited (SEL) spokesperson, said, "The acquisition is in line with our strategy to diversify our geographical reach and businesses to gas and petrochemicals sectors. The acquisition will help us leverage Veritas (India) Limited's sectoral connection to acquire gas for the second phase of expansion of our LNG complex."

Veritas (India) Limited is a key group company of Groupe Veritas (GV), a diversified multinational business group with business domains like infrastructure and logistics, alternate fuel and energy, argo venture and information technology.

Its core business domains also include PVC (Polyvinyl chloride) and Bitumen production. Apart from its global presence, it has a terminal in Terminal Hamriyah, UAE, with a capacity of 170000 MT, which is a first-of-its-kind facility in the region. GV plans to set up an integrated industrial complex with an outlay of Rs.2,274 crore at Dighi Port in Maharashtra.