Investments in AETL’s Subsidiaries
The Enzyme Technologies Ltd (AETL) investment in its subsidiaries: one in a new SPV for a solar power project, and one in the existing subsidiary Advanced Enzymes Europe B.V. (AEEBV).
Investment in a Solar Power SPV
AETL’s Board of Directors has approved an investment in a Special Purpose Vehicle (SPV) focused on a group captive solar power project. This SPV is being formed by a developer to manage a solar power plant in Sinnar, Nashik, that will supply electricity to AETL’s plants in that location. AETL will invest in a 26% equity stake in this SPV, the minimum required by applicable laws. The planned total investment by AETL in this SPV is up to ₹10 million. Once the investment is completed, the SPV will be classified as an associate company of AETL. The targeted completion date for the acquisition is March 31, 2025. The name of the developer and other specific details about the SPV will be finalized at a later date. The investment in a dedicated SPV for the solar power project aligns with AETL’s objective of transitioning to a more sustainable and cost-effective energy source.
Investment in Advanced Enzymes Europe B.V.
AETL’s Board of Directors has approved a further investment into the equity shares of AEEBV, a wholly-owned subsidiary based in the Netherlands. AEEBV serves as a holding company for its wholly-owned subsidiary, evoxx technologies GmbH, a German company that specializes in the development and production of enzymes. The purpose of this investment is to allow AEEBV to repay existing debt owed to another AETL subsidiary, Advanced Enzymes USA Inc. (AEU). This investment is not expected to exceed ₹500 million (or the equivalent amount in a foreign currency). The transaction needs approval from the Reserve Bank of India and compliance with overseas investment regulations. The targeted completion date is December 31, 2024.
By investing further in AEEBV, AETL is aiming to bolster its financial position and facilitate debt repayment. This strategic move underscores AETL’s support for its subsidiaries and its efforts to strengthen the overall financial health of the AETL group.
