Linde India spikes up on divestment of South biz
The stock of Linde India was buzzing on Wednesday as the company divested its industrial gases business in the southern part of India after the divestment was approved by the Competition Commission of India.
The Board of Directors of the company had approved the divestment on Monday. The transaction is on a slump-sale and 'as is where is basis' for an aggregate consideration of Rs. 13,800 million.
Linde India signed a binding term sheet on August 13, Tuesday with Air Water India Private Limited and Air Water Inc. to sell its business and assets based in Southern part of the country. The divestment consists the business of producing, distributing and selling industrial gases including oxygen, nitrogen and argon from the air separation plant in Bellary, Karnataka, which has 1,800 tonnes per day capacity and cylinder filling stations in Hyderabad and Chennai. The deal also includes surplus land held in Chennai and Hyderabad PGP sites and a closed Air Separation Unit at Hyderabad site. Air Water India Private Limited is a subsidiary of Japan-based company Air Water Inc.
This transaction is a fallout of the merger between between Linde AG (Germany) and Praxair, Inc. (US). In September 6, 2018, the Indian regulator Competition Commission of India direct the Linde AG (parent company of Linde India) and Praxair Inc. to sell part of their Indian business to a third party.
Reacting to this development, the stock of Linde India was trading at Rs. 519.00, up by Rs. 34.50 or 7.12 per cent on BSE in post-lunch hours.