Lumax suspends OK Play Group’s roto molded plastic business acquisition, Auto News, ET Auto

NEW DELHI: Deepak Jain-promoted Lumax Auto Systems Minimal (LATL) on Wednesday stated it experienced put the acquisition of Okay Play Group’s roto molded plastic business enterprise on maintain.

The company cited the on-heading uncertainty in business enterprise thanks to extended lockdown as the key purpose.

In February, LATL stated it would receive Okay Play Group’s roto molded plastic business enterprise at an estimated company value of about Rs a hundred and fifty crore.

The automobile element business enterprise of the Okay group experienced a Rs 42.nine crore earnings with an EBIDTA of Rs nine.six crore in 2016-seventeen, and Rs 109.six crore and Rs 34.one crore in 2017-18~

The deal would have enabled LATL to exploit quick-emerging growth possibilities in the automotive roto molded plastic fuel tanks sector for industrial motor vehicles, tractors and off-road motor vehicles in check out of the switching environment.

Even so, thanks to an outbreak of coronavirus and extended lockdown which disrupted organizations, the proposed acquisition (referred higher than) is becoming put on maintain pending even further assessment and appropriate determination in potential, the company knowledgeable BSE in a regulatory filing.

The automobile element business enterprise of the Okay group experienced a Rs 42.nine crore earnings with an EBIDTA of Rs nine.six crore in 2016-seventeen, and Rs 109.six crore and Rs 34.one crore in 2017-18. In 2018-19 it stood at Rs 125.8 crore and Rs 38.3 crore for the company.

Previously, LATL would have offered a mortgage of Rs twenty crore to Okay Play India Ltd (OKPI) on closing, at uncomplicated fascination of twelve per cent per annum, to be repaid by OKPI together with fascination by July 25, 2023 as element of the structured deal.

Also Read through: ETAuto Originals: Who owns the Indian Component Market