India Grid Trust entered into definitive agreement to acquire 48.96% stake in Jhajjar KT Transco Private Limited from Techno Electric & Engineering Company Limited.
May 29, 2020
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India Grid Trust (BSE:540565) entered into definitive agreement to acquire 48.96% stake in Jhajjar KT Transco Private Limited from Techno Electric & Engineering Company Limited (NSEI:TECHNOE) on May 29, 2020. Under the terms of consideration, The enterprise value is INR 3.1 billion. Consideration will be paid in cash. In related transaction, India Grid Trust entered into definitive agreements to acquire remaining 51% stake in Jhajjar KT Transco Private Limited from Kalpataru Power Transmission Limited (BSE:522287) and Klassik Vinyl Products LLP on May 29, 2020. Total Consideration is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. Techno Electric & Engineering Company Limited will receive INR 1.5177 billion for its stake. Transaction will be funded through a combination of debt and internal accruals.
During the FY 2019-20 Jhajjar KT Transco Private Limited has total revenue of INR 390 million and total net worth of INR 1.1 billion. The transaction is also subject to requisite regulatory approvals and compliances as the approval from Haryana Vidyut Prasaran Nigam Limited has to be obtained for the aforesaid acquisition. As per announcement of September 28, 2020, India Grid Trust acquired 36.22% stake in the sale of first closing sale shares of Jhajjar KT Transco Private Limited after obtaining the requisite regulatory and other approvals and compliance with condition precedents. As a result, India Grid Trust holds 74% stake in Jhajjar KT Transco Private Limited by acquiring stake from other two parties. The acquisition, expected to be consummated over next couple of months. Transaction is 10th accretive acquisition since listing in 2017. JM Financial Limited acted as financial advisor and Cyril Amarchand and Mangaldas as legal advisors to IndiGrid for this transaction.
Techno Electric & Engineering Company Limited is an India-based power-infrastructure company. The Company is engaged in engineering, procurement, and construction (EPC) services across power generation, transmission, and distribution catering to diverse industries. The Company is also engaged in generation of wind power through Wind Turbine Generators in the states of Tamil Nadu and Karnataka. The Company's segments include EPC (Construction) and Others. The Company is engaged in offering flue gas desulfurization (FGD), advanced metering infrastructure (AMI) and end-to-end data center solutions. It is also engaged in the transmission and distribution, including EHV substations up to 765 kV, advanced metering infrastructure, and STATCOM installations. It provides comprehensive solutions for data centers, encompassing design and engineering, civil and structural works, fire protection systems, water and allied systems, and plant electrical and illumination systems.
India Grid Trust entered into definitive agreement to acquire 48.96% stake in Jhajjar KT Transco Private Limited from Techno Electric & Engineering Company Limited.