Uniply Industries is planning to sell its plywood division to its subsidiary UV Boards as part of a Rs 300 crore deal that will take Uniply's holding in the subsidiary to 37 per cent from the present 8 per cent.
The transaction involves UV Boards issuing shares worth Rs 111 crore to Uniply, acquiring for Rs 42 crore Uniply's Gujarat facility and paying Rs 75 crore for licence to use Uniply's trademark, which will be paid equally over 10 years, in advance at the start of the year. The balance will be a consideration of Rs 72 crore. The balance in UV Boards' stake prior to the transaction and subsequently is held by public shareholders.
Uniply will focus on design and build projects where it now has an Rs 1,050 crore order book that it hopes to scale up significantly.