BS Ltd has decided not to go ahead with the Rs 937-crore acquisition of four businesses – Agarwal Steels Structures India Pvt Ltd, Durafest Automotive Pvt Ltd, NHS Metals Pvt Ltd and Rajesh Sandhi Infras and Metals Pvt Ltd, which it had announced last year.

The board of directors of the company, which met here today, decided not to go ahead with the proposed acquisition of these four businesses which was announced as a part of the strategic business plan.

Following a meeting of the progress of the proposed acquisitions, the Hyderabad-based company has reviewed the status of these acquisitions for a lumpsum consideration of Rs 937 crore to be discharged through issue of equity shares under preferential allotment.

The board had on May 20, 2015 had decided to acquire these businesses through a preferential allotment of shares.

Arun Dogra, Whole Time Director of BS Ltd, in a statement said, the acquisition was conditional upon the fulfilment of certain conditions and after securing necessary approval from lenders and bankers. Since there has been a delay in securing nod from the Competition Commission of India as also other approvals, including due diligence report, the companies, which had decided to sell the assets to BS, have backed out to pursue different plans.

Following this, the board has announced the cancellation of the proposed acquisitions as also proposal for the issue of equity shares through preferential allotment to discharge the lumpsum consideration .

The company shares ended at Rs 12.32 on the BSE, up 5 per cent.

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