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Tirupati Graphite PLC: Transaction Update
Home / Client News / Tirupati Graphite PLC: Transaction Update

Tirupati Speciality Graphite Private Limited (“TSG”) was established to develop downstream flake graphite projects and a research & development centre for graphene, advanced materials and mineral processing technologies. TSG entered into an acquisition agreement with TSG in order to capture the benefits of vertical integration. The agreement was for the acquisition of the then issued share capital of TSG by way of a share swap. However, the completion of the Proposed Acquisition under the SPA has remained pending because:

·    The acquisition requires the approval of the regulators in India under The Foreign Exchange Management Act since it classifies Tirupati Graphite as an Overseas Direct Investment; and

·    It has now determined that the independent valuation report used to establish the share swap ratio is no longer valid and a new report will need to be undertaken in terms of FEMA requirements.

As such, the timing for obtaining regulatory approval and the consideration for the proposed acquisition continues to remain uncertain.  Furthermore, TSG has advised the Company that it needs to explore alternative sources of capital to maintain its development.

In response, the Company is considering a number of alternative options to meet the objective of ensuring that Tirupati Graphite is able to continue with its plans to develop a downstream and advanced materials business.

 

To read more please follow the link below:

Transaction Update – 07:00:05 11 Jul 2022 – TGR News article | London Stock Exchange

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