11 months ago
Tega Industries Board Approves Funding for Molycop Acquisition
Tega Industries wants to buy Molycop, a company that makes things for mining.
To do this, Tega's board approved getting a lot of money.
They plan to get about ₹4,000 crore through a mix of money from investors and debt.
Tega will own most of Molycop, while Apollo Funds will own a smaller part.
The deal should be done by the end of 2025.
Tega hopes to improve Molycop's profits and grow its business, including relocating the headquarters.
This will help them become a bigger player in the mining industry.
Tega Industries' board approved raising ₹4,000 crore to acquire Molycop.
The acquisition is valued at $1.48 billion.
Tega will own approximately 77% of Molycop, with Apollo Funds holding around 23%.
The deal is expected to close by December 31, 2025.
Tega aims to increase Molycop's EBITDA margins and expand its business.
- Who
- Tega Industries, a Kolkata-based company, and private equity Apollo Funds
- What
- Tega Industries' board approved raising funds to acquire Molycop.
- Where
- Molycop is a US-based company.
- When
- The board approved the funding on Saturday, September 13, 2025. The deal is expected to close by December 31, 2025.
- Why
- To acquire Molycop, a grinding media supplier for the mining industry, and expand Tega's business.
Key facts
- Company
- Tega Industries
- Target Acquisition
- Molycop
- Deal Value
- $1.48 billion (enterprise value)
- Funding Approved
- ₹4,000 crore
- Closing Date (Expected)
- December 31, 2025
- Tega Ownership
- 77%
- Apollo Funds Ownership
- 23%
Quotes
Mehul Mohanka
Managing Director and Group CEO, Tega Industries
“The deferred contingent liability is $120 million and will be honored upon the achievement of a certain predefined criteria with a specific timeline. These criteria are primarily linked to the reopening of select closed mines where Molycop was previously a major supplier. This structure ensures that the liability is performance based and aligned with business upside linked to additional EBITDA from these contracts. If these EBITDA targets are not met the deferred contingent liability will not get triggered.”
thehindubusinessline.com
“As part of our synergy road map, we plan to relocate the current headquarters to a more strategic location with better global access, which is expected to yield cost savings of $7 billion. This move has already been discussed with the management teams.”
thehindubusinessline.com
