Hester India to acquire 50% stake in Thrishool Exim Limited, TanzaniaHESTERBIO - 1660 Change: -6.05 (-0.36 %)
News: Hester Biosciences has entered into a shareholder’s agreement to acquire 486 equity shares of Thrishool Exim (TEL), Tanzania from the existing promoters and subscribe 1,188 equity shares of TEL. Hence, acquire and subscribe a total of 1,674 equity shares representing 50% of total equity share capital of TEL. TEL is a supplier and distributor of animal health and nutrition products with turnover of Tanzanian Shillings (TSHS) 7.10 billion (~US$3 million) for CY20. Hester has acquired TEL for US$2.25 million (excluding US$0.25 million earn-outs each in next two years upon achieving the specified EBITDA).
Views: TEL has a distribution network in Tanzania for many animal healthcare products (veterinary feed additives, feed raw materials, nutritional supplements, therapeutics and equipment’s) of other manufacturers, that will help Hester to leverage and expand its business presence on the distribution side in Tanzania as well as other African countries. Hester India will have the benefit of TEL’s network for the sale of Hester India’s and Hester Africa’s (Hester Biosciences) health products and vaccines. Hester recently commercialized the animal vaccine manufacturing plant in Tanzania with 1.5 billion doses animal vaccine capacity. This acquisition is a positive step in establishing additional sales and distribution networks keeping in focus the demands from Tanzanian markets as well as of the other countries in African continent