The shares will be issued "in accordance with the terms of the Investment Agreement ... executed between Emerald Sage, Apollo, and certain promoters of Apollo, constituting approximately 9.93% of the post-issue paid up share capital of Apollo, on an as-converted basis, for an aggregate consideration of INR 1,080 crore," it noted.
Emerald Sage Investment's acquisition of 9.93% stake in Apollo Tyres was approved by the The Competition Commission on Monday. As per the combination notice filed with CCI, the proposed transaction relates to subscription of 10,80,00,000 compulsorily convertible preference shares of Rs 100 each of Apollo Tyres by Emerald.
The shares will be issued "in accordance with the terms of the Investment Agreement ... executed between Emerald, Apollo, and certain promoters of Apollo, constituting approximately 9.93% of the post-issue paid up share capital of Apollo, on an as-converted basis, for an aggregate consideration of INR 1,080 crore," it noted.
Also See: Apollo Tyres MD: Govt To Play Big Role To Keep Firms Afloat
The Competition Commission of India (CCI) also tweeted about the approval saying that it "approves proposed acquisition of 9.93 per cent stake by Emerald Sage Investment Limited in Apollo Tyres Limited."
Emerald Sage Investment Ltd. is a Mauritius-based investment holding company, while Apollo Tyres is one India's leading tyre manufacturers.
About Apollo Tyres: Standing firm as the leading manufacturers of tyres since the day of its inception in 1972, Apollo is a trusted name in the Indian tyre market. Headquartered in Gurgaon, India, the company with humble roots has now risen to serve almost 100 countries across the globe including the likes of Hungary and Netherlands. Apollo tyres is a renowned name in the automotive sector offering tyres with outstanding braking ability along with high stability and precision running. The company sells its tyres under two names - Apollo and Vredestein. As a leader in the tyre industry, Apollo considers vehicle safety and customer satisfaction as its top- most priorities.
