Fairfax India to acquire stake in Privi Organics

Fairfax India Holdings Corporation has declared that, through its wholly-owned subsidiaries, it has entered into a share subscription agreement with Privi Organics Limited and a share purchase agreement with existing shareholders of Privi Organics to acquire a total 51% equity ownership of Privi Organics for a consideration of approximately INR 3.7B (approximately USD 55M at current exchange rates).
Additionally, the boards of directors of Adi Finechem Limited ("Adi Finechem") and Privi Organics have approved a scheme of arrangement involving the two companies to build an Indian speciality chemicals champion, with both companies converting renewable waste feedstocks into value-added speciality chemicals. The proposed scheme will bring significant diversification and synergies to both partners, with Adi Finechem gaining access to high quality research and development facilities, and Privi Organics benefiting from Adi Finechem’s focus on cost optimization and capital efficiency.
"We are excited to partner with great entrepreneurs who have shown commitment to building great businesses over the long term. Mahesh Babani, D.B. Rao and their experienced management team have done a commendable job in building Privi Organics into a global leader in their product segments and will continue to grow its operations independently under their leadership" said Prem Watsa, Chairman of Fairfax India.

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