Aditya Birla Nuvo Ltd, part of the Aditya Birla group said on Monday that it will make Birla NGK Insulators Pvt Ltd (Birla NGK) its subsidiary and has entered into a share purchase agreement regarding this.
Birla NGK is a 50:50 joint venture of Aditya Birla Nuvo Ltd and Japan-based NGK Insulators Ltd for insulator business.
The company and and its wholly-owned subsidiary plans to purchase all the equity shares held by NGK and its affiliate, Mitsubishi Corporation in Birla NGK, Aditya Birla Nuvo informed the Bombay Stock Exchange.
The company, along with its subsidiary, have entered into share purchase agreement with its joint venture partner, pursuant to which all the equity shares held by NGK and Mitsubishi Corporation in Birla NGK would be purchased in two stages.
On completion of this transaction, Birla NGK would cease to be a joint venture company and would become a subsidiary of Aditya Birla Nuvo.
The existing marketing agreement, pacts for know-how, patents and technical assistance between joint venture partner would also be terminated on completion of the deal, which would be completed before December this year.
The shares of the company were trading at Rs 1,069.90, down 0.27 per cent, on the BSE.