Lumax Auto puts Rs 150-cr deal with OK Play on hold

The same for 2018-19 stood at Rs 125.8 crore and Rs 38.3 crore.

Auto component maker Lumax Auto Technologies on Saturday said its proposed acquisition of OK Play Group's roto molded plastic business for around Rs 150 crore has been put on hold due to coronavirus pandemic. Due to unprecedented pandemic situation and extended lockdowns disrupting business continuity, the proposed acquisition is being put on hold, pending further review and appropriate decision in future, Lumax Auto Technologies said in a regulatory filing.

Earlier in February this year, the company's board had approved the deal to provide Lumax Auto Technologies Ltd (LATL) access to latest rota molding technologies. The company had said that the initial purchase consideration would be based on an enterprise value that will be EBITDA (earnings before interest, taxes, depreciation and amortization) multiple of 5.67 times, to be applied on 3 years average EBITDA of 2017-18, 2018-19 and 2019-20 of the auto component business of OK Play.

The auto component business of the OK group had a revenue of Rs 42.9 crore and EBITDA of Rs 9.6 crore in 2016-17, Rs 109.6 crore and Rs 34.1 crore, respectively, in 2017-18,. The same for 2018-19 stood at Rs 125.8 crore and Rs 38.3 crore. The balance 10 per cent consideration was to be computed and paid based on six times of 2022-23 EBITDA of the acquired auto component business by July 31, 2023, subject to certain adjustments in accordance with definitive agreements to be entered into by the company.