Apollo Micro Systems to acquire controlling stake in Premier Explosives

Hyderabad-based Apollo Micro Systems has announced plans to acquire a 41.33 per cent promoter stake in the listed Premier Explosives for approximately ₹1,550 crore in an all cash deal, subject to regulatory clearances.

On completion of acquisition Apollo will launch an open offer to acquire an additional 26 per cent stake in the company.

The open offer price has been announced at ₹698 per equity share, though Premier Explosives shares were trading at ₹714 a piece on 9 July.

Following completion, Premier Explosives will come under the umbrella of Apollo Micro Systems and will continue to operate under its existing brand, with scaled performance, Apollo has said.

Premier Explosives is a manufacturer of high energy materials for defence, aerospace and mining sectors. It also undertakes operation and maintenance services of solid propellant plants at the Sriharikota Centre of ISRO.

Apollo Micro Systems was advised by Crawford Bayley & Co as legal counsel. AKS Family Trust (promoters of Premier Explosives) was advised by Deloitte Touche Tohmatsu India as exclusive transaction advisor and Pioneer Legal as legal counsel.