Chembond Chemicals to divest its 49% stake in JV to Henkel Chembond Surface Technologies

NEW DELHI: Mumbai-based Chembond Chemicals today said it would divest its 49 per cent stake in Henkel Chembond Surface Technologies to the German firm.

Chembond has "signed an agreement with Henkel Adhesives Technologies India, a subsidiary of Henkel AG & Co, KGoA, headquartered in Dusseldorf, Germany, to divest 49 per cent shareholding in Henkel Chembond Surface Technologies," the company said in a filing to the BSE.

Commenting on the development, Chembond Chemicals Managing Director Nirmal V Shah said: "Our decision to divest was based on a number of factors, including a strategy to invest in and grow the company's water treatment, construction chemicals, industrial and high performance coatings, animal nutrition and industrial enzymes businesses."

The company had recently initiated new businesses like bio-based polyamides. It recently signed for formation of JV with Calvatis GmBH for industrial cleaning and hygiene system for food, beverage and dairy industries, he added.

The company's shares were trading 3.03 per cent down at Rs 390 per scrip during afternoon session on the BSE.