Jain Irrigation acquires 50 pc of Israeli firm
Mumbai: Jain Irrigation Systems today said it has completed acquisition of 50 per cent ownership rights of Israel-based Naandan Irrigation Systems (CS) Ltd.
Pursuant to the completion of acquisition, Jain Irrigation would now have 50 per cent management control in the Israeli firm, the domestic agriculture company said in a communique to the Bombay Stock Exchange.
On May 28, Jain Irrigation had said that it had signed definitive agreements through a wholly-owned subsidiary in Netherlands (Jain (Israel) B.V., Netherlands) for acquiring 50.001 per cent stake in Naandan Irrigation in an all-cash deal for USD 21.5 million, after the board of directors had given their approval.
On the completion of the proposed transaction, Naandan's name would be changed to "NaanDan lain Irrigation CS Ltd", the company had said.
Earlier last month, Jain Irrigation Chairman B H Jain said: "we will be able to leverage their technology to improve productivity of Indian agriculture and use their access to global markets to increase exports from both the countries."
Naandan would be controlled and managed jointly by Jain Irrigation and Kibbutz Naan on an equal basis.
Kibbutz Naan of Israel is one of the largest kibbutz in Israel. Kibbutz is a kind of cooperative society with members contributing and sharing the economic benefits from its assets and management.
Naandan's global network includes manufacturing companies in the US, Spain, Mexico, Brazil, Chile and Australia and marketing subsidiaries in France and Italy.
Jain Irrigation's shares were last trading at Rs 465.75, down 1.84 per cent, on the BSE.
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