UV Boards Limited (BSE:526957) agreed to acquire Plywood Division from Uniply Industries Limited (BSE:532646) for INR 3 billion on August 11, 2017. The consideration will be payable in cash, issuance of shares assumption of liabilities and asset. As per the terms of transaction, UV Boards will issue 44.4 million shares, pay cash consideration of INR 360 million, transfer of Gujarat facility for INR 420 crores and license of trademark to UV Boards for a total fee of INR 750 million to be paid equally over 10 years, in advance at the start of the year.

UV Boards will also assume working capital liabilities. As of result of the transaction, Uniply Industries's stake in UV Boards will increase to 37.11% and Uniply Industries have a right to nominate 4 members to the Board of Directors of UV Boards. The current management team of Plywood Division of Uniply Industries headed by Srinivasan Sethuraman and Ramesh Malpani will be integrated into that of UV Boards and financial results of UV Boards consolidated into that of Uniply Industries on closing of transaction.

The transaction has been approved by Board of Directors of UV Boards and Uniply Industries.