Surat, April 25, 2023: Ami Organics Limited (BSE: 543349, NSE: AMIORG), a leading global manufacturer of advanced pharmaceutical intermediates and speciality chemicals, announced that the board has approved the acquisition of 55% partnership interest in Baba Fine Chemicals, a fine speciality chemicals company focused on the custom synthesis and manufacturing of intermediates. This acquisition heralds AMI Organics’ foray into the high-entry-barrier semiconductor industry.

The acquisition is in line with AMI Organics’ strategy of expanding its speciality chemicals division to focus on niche products manufactured using advanced technology with low competition and high entry barriers. AMI Organics has already developed two electrolyte additives used as Solid Electrolyte Interface in Lithium-lon-Batteries which are awaiting commercial orders from its customers. This agreement gives AMI access to the complementing products of Baba Fine Chemicals which are also focused on the electronic industry, mainly semiconductors.

Transaction details:

· AMI Organics to acquire 55% partnership interest in Baba Fine Chemicals from two partners for the consideration of Rs. 68.2cr subject to adjustments as may be required at closing stage (“Purchase Consideration’).

· Third Partner at BFC, Mr. Rakesh Gupta will continue to stay on the board and lead the Marketing and Technical Development for BFC.

· The consideration is based on a valuation of 4x adjusted EBITDA for FY23.

· The Purchase Consideration will be discharged through a combination cash consideration and issuance of securities of the Company to the exiting parties on a preferential basis

· The consummation of the transaction is subject to completion of customary conditions precedent including obtaining such approvals as may be required.

· The acquisition of Partnership Interest shall be subject to such regulatory /statutory approvals as may be required under applicable laws including the approval of the shareholders of the Company for issuance of Subscription Shares on a preferential basis.