In 2016, Utkarsh Global Holdings Private Limited (Utkarsh), a promoter of Excel Crop Care Limited (Excel), alongside other shareholders, sold their stake in Excel to Sumitomo Chemical Company (Sumitomo) for approximately US$94 million. This transaction was part of a broader strategic move by Sumitomo to expand its footprint in India’s agrochemical sector, making the Japanese conglomerate one of the key players in the Indian market. Majmudar & Partners acted as legal advisors to Utkarsh in the transaction, ensuring that all legal, regulatory, and corporate governance aspects were meticulously addressed to facilitate a smooth exit.
Facilitating the Transaction
Majmudar & Partners provided essential legal guidance to Utkarsh, with a focus on regulatory compliance and transaction structuring. The firm’s role included:
- Compliance with Corporate Governance Standards: Ensured adherence to Indian corporate governance norms, addressing all legal requirements mandated by the Companies Act, 2013 India’s foreign exchange regulations for a seamless transfer.
- Drafting and Negotiation of Transaction Documents: Drafted and negotiated the terms of the share purchase and other ancillary agreements, safeguarding Utkarsh’s interests in the exit while enabling a smooth handover to Sumitomo.
- Exit Strategy Planning: Provided strategic legal advice on structuring an efficient exit strategy, ensuring that Utkarsh and other exiting shareholders could optimize capital realization from the sale and redeploy the funds into other ventures or growth opportunities.
The sale of Utkarsh’s stake in Excel to Sumitomo marked a significant consolidation in India’s agrochemical sector. With legal support from Majmudar & Partners, the transaction was successfully executed, ensuring compliance with Indian laws.
With a strong track record in handling complex joint ventures and cross-border acquisitions and exits, Majmudar & Partners offers expert legal counsel to companies navigating the Indian regulatory landscape. Contact us today to ensure that your joint venture transactions are executed smoothly, supported by comprehensive legal advice and due diligence.