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Apollo Micro Systems to Acquire 41% of Premier Explosives for ₹15.5 Billion
Apollo Micro Systems has agreed to acquire a 41.33% stake in fellow defence equipment manufacturer Premier Explosives for ₹15.5 billion ($162.5 million), the companies announced Thursday. The transaction underscores a continuing trend of consolidation within India's burgeoning domestic defence industry.
Transaction Details
Under the terms of the deal, Apollo Micro Systems will also make an open offer to acquire up to an additional 26% of Premier Explosives from public shareholders. This mandatory offer, required by India's takeover regulations, will be priced at ₹698 per share.
The companies expect the acquisition to be completed within five months. The deal remains subject to customary closing conditions, including regulatory clearance from the Competition Commission of India.
AdStrategic Rationale
Apollo Micro Systems stated that the acquisition is designed to create strategic synergies by combining its expertise in defence systems with Premier's capabilities in energetic materials. Premier Explosives is a key supplier of high-energy materials, rocket motors, and munitions for the defence and aerospace sectors. The combination aims to expand the companies' ability to participate in major Indian defence and space programs.
This move comes as India's defence manufacturing sector experiences significant growth, fueled by increased government spending and a strategic push for local production and indigenization. According to the announcement, Premier Explosives will continue to operate under its existing brand following the completion of the transaction.