Tata Chemicals has acquired a UK-based company called British Salt for 93 million pounds.
Commenting on the deal, PK Ghose, Executive Director and CFO, Tata Chemicals says, “The entire deal of 93 million pounds is being debt financed, it is without any recourse to Tata Chemicals and it is at a very advantageous rate. It is actually financed on the assets of Brunner Mond UK and British Salt. What we have done is we have taken this opportunity of not only refinancing their existing debt at the lower rate and also done the acquisition financing together with one bank. So, the 150 million pound is the total debt we have taken, which includes 93 million pounds of acquisition finance and the balance as refinancing of existing debt.”
He further says, “British Salt has a turnover of 35 million pound this year estimated. On an average, I would say they would do an earnings before interest, taxes, depreciation and amortization (EBIDTA) margin consistently of 15%. So ,it would be a margin of about 15-17 million pounds roughly. On overall basis, after this with Brunner Mond UK as well as British Salt taken together, the net bottom-line would vary, in the beginning years the interest rates will be there, so it will vary between 21 and 28 million pounds.”
Commenting on the deal, PK Ghose, Executive Director and CFO, Tata Chemicals says, “The entire deal of 93 million pounds is being debt financed, it is without any recourse to Tata Chemicals and it is at a very advantageous rate. It is actually financed on the assets of Brunner Mond UK and British Salt. What we have done is we have taken this opportunity of not only refinancing their existing debt at the lower rate and also done the acquisition financing together with one bank. So, the 150 million pound is the total debt we have taken, which includes 93 million pounds of acquisition finance and the balance as refinancing of existing debt.”
He further says, “British Salt has a turnover of 35 million pound this year estimated. On an average, I would say they would do an earnings before interest, taxes, depreciation and amortization (EBIDTA) margin consistently of 15%. So ,it would be a margin of about 15-17 million pounds roughly. On overall basis, after this with Brunner Mond UK as well as British Salt taken together, the net bottom-line would vary, in the beginning years the interest rates will be there, so it will vary between 21 and 28 million pounds.”
No comments:
Post a Comment