The Mumbai-based chemical making company, Fairchem Speciality Ltd is undergoing a restructuring process to concentrate on its main businesses. The company is originally backed by a Canadian company, Fairfax Group which is led by Prem Watsa.
In the prospective business deal, the chemical making company will amalgamate with an entirely owned firm, Privi Organics India Ltd bad thus, form a new subsidiary entity, Fairchem Organics Ltd.
By amalgamating with Privi Organics, the companys aroma business will come under one roof, Fairchem Speciality informed in a regulatory filing, as reported by the Indian daily news, VC Circle.
The amalgamated entity will be known as Privi Speciality Chemicals Ltd. Furthermore, the company will transfer its nutraceutical, as well as Oleo chemical businesses, under Fairchem Organics, as reported by the Indian daily news, VC Circle.
As per the restructuring scheme, stakeholders will be receiving one share of Fairchem Organics apiece for procuring every three shares of the parent firm, as reported by the Indian daily news, VC Circle.
The decision to create two niche and focused segments without any business overlap will be prudent to raise capital as the growth profiles and the capital needs of these businesses are very different, Fairchem Speciality told the Indian daily news, VC Circle.