Jain Irrigation to acquire more than 50 per cent stake in Naandan

Mumbai, May 28 (UNI) Irrigation product manufacturer, Jain Irrigation today announced that it has signed a definitive agreement through a subsidiary in Netherlands to acquire 50.001 per cent stake in Israel based Naandan Irrigation Systems C S Ltd.

The company has bidded the shares of Naandan for USD 21.5 million, of which USD 10.5 million will be infused in Naandan for its future growth, Jain said in a release.

According to the release, Naandan would be controlled and managed jointly by the Jain Irrigation and Kibbutz Naan on an equal basis.

While, Jain is committed to bring additional funding support in form of loan and guarantees to the tune of USD 7.5 million for the bona fide growth requirements of the company. The closing is expected to take place in the next month.

After the completion of the proposed transaction, the Naandan will be renamed as Naandan Jain Irrigation C S Ltd and will become a platform for development of worldwide drip/sprink market for both partners.

UNI