The company entered into binding agreements with CLP India to sell its stake in three power transmission assets
Shares of Kalpataru Power Transmission added 3.7 percent intraday on July 3 after the company entered into binding agreements to sell stake in three subsidiaries.
As per the company press release, the company entered into binding agreements with CLP India to sell its stake in three power transmission assets namely, Kalpataru Satpura Transco (KSTPL), Alipurduar Transmission (ATL) and Kohima Mariani Transmission (KMTL), for an estimated enterprise value of Rs 3,275 crore.
The transaction for ATL and KMTL will be effective post commercial operation date (COD) and fulfilment of certain conditions.
Techno Electric & Engineering Company owns 26 percent stake in KMTL.
The estimated amount of debt at the SPV levels would be approximately Rs 2,000 crore at the time of COD.
Ernst & Young (EY) and Khaitan & Co. are advisors to KPTL and Techno for this transaction.
On the other hand, the company signed a definitive agreement with Tano India Private Equity Fund II (Tano) to acquire 19.94 percent stake in Shree Shubham Logistics for a consideration of Rs 64.66 crore, company said in another release.
The consideration will be paid through a non‐cash equity swap transaction, in which 12,54,900 equity shares of KPTL will be issued to Tano at the value of Rs 515.25 per share, subject to relevant approvals.
On completion of this acquisition, KPTL’s stake in SSL shall increase to 100 percent.
At 0931 hours, Kalpataru Power Transmission was quoting at Rs 544.80, up Rs 13, or 2.44 percent.India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
