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Concord Biotech Limited Announces Strategic Acquisition of 26% Equity in Clean Max
Team Finance Saathi
16/Jan/2025
What's covered under the Article:
- Concord Biotech acquires a 26% stake in Clean Max Everglades to promote renewable energy.
- The acquisition aligns with Concord Biotech's sustainability goals and long-term energy savings.
- The investment will develop a captive renewable energy facility with wind and solar power capacity.
In a major move toward sustainability, Concord Biotech Limited has entered into a Share Purchase Agreement (SPA) with Clean Max Everglades Private Limited (CMEPL), wherein the company will acquire 26% of the equity shares of Clean Max. This acquisition marks an important step in Concord Biotech’s continued commitment to renewable energy and its efforts to reduce its carbon footprint while enhancing operational efficiency.
The investment will be directed towards developing a captive power generation facility in Gujarat. The facility will leverage wind energy with a capacity of 6.6 MW and solar energy with a capacity of 3.3 MWp DC to power the company’s plant located in Dholka, Ahmedabad. This move aligns with the company’s broader sustainability objectives and positions Concord Biotech as a proactive player in the fight against climate change. Renewable energy offers long-term benefits, including the reduction of energy costs and compliance with ever-evolving environmental regulations.
The acquisition does not involve related party transactions, and no interests from the promoters or group companies have been reported in CMEPL. The deal is structured as a cash consideration, with CMEPL issuing 26,000 equity shares at a price of ₹10 each to Concord Biotech. The deal is expected to be completed within 90 days, with the company acquiring a 26% stake in CMEPL.