ASI Industries Limited, an Indian stone mining and quarrying company, announced its intention to sell its engineered stone business to Marudhar Rocks International. The parties have signed a memorandum of understanding (MoU) for defining the main terms agreed upon, which will be used as the basis of a definitive agreement.
The deal has been approved by ASI Industries’ board of directors and is expected to close by March 2022. However, it is still subject to shareholders’ and lenders’ approvals and other statutory and contractual approvals.
As per the MoU, Marudhar Rocks International will also take on the debt of ASI Industries’ engineered stone business. The Tamil Nadu-based granite supplier will also take in all current employees of the business.
ASI Industries said that it will continue with its business of Kotah and other natural stone businesses. Deepak Jatia, CMD of ASI Industries commented, “The transaction was a bittersweet one for ASI as a company. While we were fully focused on developing the Engineered Stone Division as the next segment of growth, the conclusive benefits from the transaction were reason enough to enter into an agreement with Marudhar Rocks. The transaction helps us pare down our debts and become a zero-debt company in the near future. Going forward, we are committed to building on our Kotah stone business, and should there be an opportunity to move into some adjacencies, we will keep the investors informed.”
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