Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) told investors that it is looking at additional options to advance its engagement with Tirupati Speciality Graphite Private Limited (TSG), a company it agreed to acquire in 2018.
The deal for TSG, which was set up to develop downstream flake graphite projects, was pursued by Tirupati to pursue the benefits of vertical integration. The acquisition remains subject to regulatory approval and still has some outstanding issues.
Specifically, it needs to be approved by the Indian government as the company is deemed to be an overseas direct investment. Additionally, it has been determined that the independent valuation report used to establish the ratio for an equity swap is no longer deemed valid, so would need to be replaced.
Tirupati, in a statement, said it continues to seek regulatory approval but in the meantime, it is exploring the possible participation in alternative investment vehicles for investment in TSG as well as exploring possible commercial arrangements with TSG.
"We remain committed to the development of a downstream and advanced materials business to enable us to take advantage of the benefits of being a vertically integrated graphite and graphene business," executive chair Shishir Poddar said.
“Ideally, this would be through the completion of the acquisition of TSG, but in recognition of the outstanding regulatory hurdles and uncertain timeline to completion, the board has taken the pragmatic approach of exploring other routes to achieve our ultimate objective while continuing to push forward with the previous arrangement."