Shares of Kiri Industries declined 6.1% to ₹682.25 in early trade on May 30 after the company announced the signing of a Share Purchase Agreement (SPA) to divest its entire 37.57% stake in DyStar Global Holdings (Singapore) Pte. Ltd. to Zhejiang Longsheng Group Co., Ltd.
As per the SPA, signed on May 29, 2025, alongside court-appointed receivers from Deloitte & Touche LLP, Zhejiang Longsheng will acquire 26,23,354 equity shares of DyStar at a base consideration of USD 676.26 million. An additional USD 20.29 million may be payable to address shortfall adjustments or other obligations. Further adjustments may also apply based on the final terms of the agreement.
This divestment follows a directive from the Singapore International Commercial Court (SICC) in February 2024, which ordered an en-bloc sale of DyStar stakes held by both Kiri Industries and Senda International Capital. The transaction is subject to regulatory approvals and customary closing conditions. The long-stop date for completion is set for October 2, 2025, with an extension available until November 3, 2025.
J.P. Morgan Securities Asia is acting as the financial advisor to Kiri Industries for this transaction.
The stock saw selling pressure despite the substantial valuation of the deal, likely on investor concerns about near-term earnings visibility and execution timelines.
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