Manali Petrochemicals Limited has revealed plans to sell its UK-based subsidiary, Notedome Ltd, to the Italian firm Chimica Organica Industriale Milanese COIM. The sale price will be at least 8.5 times the adjusted EBITDA of £2.12 million, as agreed by both parties. The transaction will be executed on a cash-free and debt-free basis, with customary adjustments.

The board of Manali Petrochemicals approved the proposal during a meeting on Thursday. AMCHEM SG, an overseas wholly owned subsidiary, will sell its entire stake in Notedome Ltd to COIM S.p.A., pending shareholder approval. This decision marks a significant shift in the company’s strategic direction.

Financial Impact and Details

Notedome Ltd contributes over 10% to Manali Petrochemicals’ consolidated revenue of ₹9.21 crore for 2024-25 and 5.57% to its net worth of ₹10.95 crore. The sale is expected to impact these financial metrics significantly once completed. The company did not disclose further specifics about the transaction.

A binding Share Purchase Agreement (SPA) will be established between the seller and buyer soon. The buyer will acquire the business for at least 8.5 times the adjusted EBITDA of £2.12 million, ensuring a substantial return for Manali Petrochemicals.

Corporate Changes and Future Outlook

Upon completion of this deal, Notedome Limited and its subsidiary will no longer be part of AMCHEM SG or a step-down subsidiary of Manali Petrochemicals Limited. This divestment aligns with the company’s strategy to streamline operations and focus on core business areas.

Manali Petrochemicals, based in Chennai, operates chemical manufacturing facilities in Manali, Chennai. The company continues to explore opportunities that align with its long-term growth objectives while maintaining financial stability and shareholder value.

This strategic move by Manali Petrochemicals reflects its commitment to optimising its portfolio and enhancing operational efficiency through targeted divestments.

With inputs from PTI