The Board Max Speciality Films (MSF) today inducted Toppan Printing Co. Ltd, Japan (Toppan) as the joint venture partner with a 49% stake[1] in Max Ventures and Industries Limited's (MaxVIL) flagship manufacturing business – MSF.
Toppan has acquired 49% of the equity share capital of MSF on a fully diluted basis through a mix of secondary sale by MaxVIL and primary share issuance by MSF. While MaxVIL has transferred 1,39,45,659 equity shares representing 35.84% of the equity shares of MSF (on a fully diluted basis) for INR 104.27 per equity shares aggregating to INR 145.41 crore, MSF has issued and allotted 5,118,407 equity shares representing 13.16% of the equity share capital of MSF (on a fully diluted basis) for INR 104.27 per equity share aggregating to INR 53.36 crores.
The Board of MSF will now have equal representation of MaxVIL and Toppan.
The new partnership with Toppan, a multinational corporation with interests in Information & Communication, Living & Industry, and Electronics, will help strengthen the speciality films business and serve as a testimony of MaxVIL's commitment to expanding its manufacturing business.
Established in 1900, Toppan (Market Cap of US$ 6.8 bn) will serve as a strategic partner in MSF and share their expertise in managing a global speciality films business, as well as, leverage their global sales network. Under this partnership, Toppan, which is a large global buyer of BOPP products (MSF's key offering), will also serve as a customer of MSF.
The transaction will also result in MaxVIL's treasury corpus growing to INR 260 crore, including the capital infusion of INR 128 crore from the New York Life subsidiary and MaxVIL promoters, in February, 2017.
MSF has undertaken key expansion efforts in the past 12-18 months. The MSF Board last year approved an investment of INR 250 crore to set-up its 5th BOPP line, which will help augment production capacity by a significant 60% to over 70,000 tons per annum. The proceeds from this transaction will also be utilized for MSF's on-going capacity expansion.
MaxVIL is the newest entity in the Max Group of companies that came into existence after the erstwhile Max India Group was demerged into Max Financial Services Limited, Max India Limited and Max Ventures and Industries Limited (MaxVIL). MaxVIL has four distinct business verticals Max Speciality Films (Manufacturing), Max Estates (Real Estate), Max Learning (Education) and Max I. (providing intellectual and financial support to high-potential start-ups). MaxVIL is listed both on BSE and NSE. Other investors in MaxVIL include Morgan Stanley and Reliance Mutual Fund.
Transaction Advisors
Ambit acted as the financial advisor to MSF and MaxVIL. Daiwa acted as the financial advisor to Toppan. AZB & Partners (Delhi team) acted as legal advisor to MaxVIL and Shardul Amarchand Mangaldas (Delhi team) acted as legal advisor to Toppan.
About Max Ventures and Industries Limited
Max Ventures and Industries, is the holding company of Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group's entrepreneurial arm to explore the 'wider world of business', especially taking cues from the economic and commercial reforms agenda of the present Government, including 'Make in India', 'Skill India', 'Digital India', among others. With this vision, MaxVIL has incorporated three new subsidiaries, which are Max Estates, the real estate arm of the Max Group with the vision to bring the Group's values of Sevabhav, Excellence and Credibility to the Indian real estate sector, Max I. Limited, a fully owned special purpose vehicle, will facilitate Intellectual & Financial Capital to promising and proven early-stage organizations across identified sunrise sectors and Max Learning Limited, which is focused on the education sector.
MaxVIL is listed on both the Bombay Stock Exchange as well as the National Stock Exchange. As on date, MaxVIL has 6,89,77,878 outstanding shares at a face value of Rs 10 per share. The current promoter shareholding in MaxVIL is 35.12%.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016. The Group's investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Wasatch, Ward Ferry, Nomura, New York Life and Invesco.
The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.
For further information, please visit:
Max Group: www.maxgroup.net
Max Ventures & Industries: www.maxvil.com
Facebook: @themaxgroup
Twitter: @MaxGroup
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