India-based insurance and hospitals group Max India is set to divest its bi-axially oriented polypropylene (BOPP) films business for about Rs8bn ($152m), as part of plans to exit its non-core business.
Max India is in advanced negotiations with at least two overseas firms in Europe and the US to sell its business, economictimes.indiatimes.com reported.
The transaction is expected to close during this quarter and the two-stage deal, which is under consideration involves sale of majority stake in the first phase, followed by the residual stake sale at a pre-determined price, later.
Max India's film business is expected to generate an operating profit of Rs750m ($14m) on revenues of about Rs7bn ($133m), for the year ended March 2012.
The BOPP film is used for flexible packaging applications.
