Makers Laboratories Limited (BSE:506919) made an offer to acquire 26% stake in Resonance Specialties Limited (BSE:524218) for approximately 170 million on September 29, 2020. Under the terms of the transaction, Makers Laboratories made an offer to acquire up to 3 million shares from shareholders of Resonance Specialties at INR 55.5 per share in cash. Consideration shall be paid on December 22, 2020. Kaygee Investments Private Limited is acting as a party in concert with Makers Laboratories Limited. In related transactions, Makers Laboratories agreed to acquire 45.48% stake in Resonance Specialties from Ushma Investments Pvt Ltd and Vista Finance & Leasing Private Ltd. through block deal and Kaygee Investments agreed to acquire 8.76% stake from Vista Finance & Leasing Private Ltd. through off-market purchase. Makers Laboratories Limited and Kaygee Investments Private Limited have adequate resources to meet the financial requirements of the offer. The fund requirements will be met from own sources/Net Worth and no borrowings from Banks / FIs or foreign sources. In accordance with Regulation 17 of the SEBI SAST Regulations 2011, Makers Laboratories Limited and Kaygee Investments Private Limited have deposited INR 166.6 million by way of cash, being over 100% of the entire amount of the consideration (assuming full acceptance by the shareholders) in an escrow account with ICICI Bank Limited, Capital Market division. Prior to these transactions, Makers Laboratories do not hold any stake in Resonance Specialties.

Makers Laboratories Limited and Kaygee Investments Private Limited intend to exercise control over Resonance Specialties Limited and make changes in the Board of Directors of Resonance Specialties Limited in accordance with the provisions of SEBI SAST Regulations, 2011. No approval from any bank or financial institutions is required for the purpose of the offer. As on the date of detailed public statement, no other statutory approvals are required to be obtained for the purpose of the offer. The offer would be subject to all the statutory approvals that may become applicable at a later date before the completion of the offer. The offer is not subject to any minimum level of acceptance from the shareholders i.e. it is not a conditional offer. On September 29, 2020, the Board of Directors of Makers Laboratories approved the transaction. The independent director Committee considers the offer price is fair and reasonable. The tender offer will open on November 24, 2020 and will close on December 8, 2020. As on November 18, 2020, the tender offer will open on November 26, 2020 and will close on December 10, 2020. Amol Kshirsagar and Satish Kumar of Arihant Capital Markets Limited acted as financial advisors to Makers Laboratories. N. Surreash of Adroit Corporate Services Pvt. Ltd acted as the registrar to Resonance Specialties Limited.

Makers Laboratories Limited (BSE:506919) completed the acquisition of 0.002% stake in Resonance Specialties Limited (BSE:524218) for INR 0.01 million on December 10, 2020. Under the offer 201 shares were tendered and acquired.