India-based holding company Max Ventures & Industries (MaxVIL) has agreed to sell its 51% residual stake in Max Specialty Films (MSF), representing its exit from the packaging business.

MSF is a 51:49 joint venture between MaxVIL and Japanese printing company Toppan Printing.

Under the terms of an agreement between the partners, Toppan will acquire the remaining interest in MSF for an enterprise value of Rs13.5bn ($181.5m), which is subject to customary adjustment.

The amount will be paid in two tranches of Rs6bn and Rs6.5bn respectively. Toppan is also expected to assume MSFL’s debt.

The divestiture is in keeping with MaxVIL’s strategy to focus on its real estate business.

MaxVIL managing director and CEO Sahil Vachani said: “The decision to divest our residual 51% stake in the speciality packaging business to the existing partner is to generate additional growth capital to deploy in the real estate business, which offers tremendous growth opportunities.

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“Backed by a successful track record of developments in the commercial space such as Max Towers and Max House, strength of differentiation in design, end-user experience and the overall impeccable governance of the Max Group, MaxVIL is well-positioned to scale both its commercial and residential businesses and deliver substantial value to all stakeholders.”

MSF specialises in manufacturing biaxially oriented polypropylene (BOPP) films, including speciality packaging, labels, coating and thermal lamination films.

The company has a production capacity of 72,000tpa.

In a separate development, MaxVIL has reported consolidated revenues of Rs3.78m for the second quarter (Q2) of the fiscal year 2022 (FY22), a 31% increase from a year earlier.

The company’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to Rs627m, up by 20% from Q2 2021.

Vachani said: “With a strong enquiry pipeline, aided with recovery in the country’s economy, we are extremely confident of the 100% leasing of both our assets this financial year and of our growth trajectory moving forward.”