China's plastic manufacturer Kingfa Sci & Tech Co Ltd has entered into a definitive agreement to acquire 66.5% stake in Chennai-based Hydro S&S Industries Ltd (HSSIL), a manufacturer of reinforced polypropylene compounds, for Rs 10.65 crore (US$1.94 million) from the promoters of the company, as per a stock market disclosure. Founded in 1983, HSSIL manufactures and supplies reinforced polypropylene compounds, thermoplastics elastomers and fibre reinforced composites. It sells its products under the brand name Hyprene. The firm is a part of the WS Group, and has a capacity to produce 30,000 tpa of plastic compounds.
Kingfa Sci has also filed for an open offer to acquire 16,65,874 more equity shares from public shareholders of HSSIL, constituting 26% of the fully paid up equity share capital of the company at Rs 42.70 per share, aggregating Rs 7.11 crore (US$1.29 mln). If the open offer is fully successful, Kingfa Sci will hold 92.5% stake in HSSIL. This would be more than the minimum public holding norms of 25% but would allow the Chinese firm to delist the company. Kingfa Sci manufactures modified plastics. Its products include flame retardant resins, reinforced and toughened resins, polymeric alloys, functional master batches, bioplastics and partial recycled resins which are used in automobiles, electronic appliances, industrial equipment, consumer goods, toys, packaging products, etc. The firm was founded in 1993 and is based in Guangzhou, China.