Brazil subsidiary of Kalpataru Power Transmission to acquire 51 per cent stake in Fasttel

Kalpataru Power Transmission Limited’s (KPTL) wholly-owned subsidiary in Brazil namely, Kalpataru Power do Brasil Participações Ltda has signed definitive agreement to acquire a controlling stake of 51 per cent in Fasttel Engenharia Ltda, Brazil (Fasttel) for ~USD 8.80 million. 

This acquisition will enable KPTL to strengthen its core EPC business and have a greater geographical presence in stable and growing markets. The transaction is likely to close by the end of Q1FY22. 

Fasttel is engaged in engineering, procurement & construction (EPC) and maintenance of power transmission lines, substation & distribution systems across various voltage range up to 750 kV. It operates through three business segments that include EPC of the substation, transmission & distribution network services with revenue of around USD 47 million in 2020. It has a presence in Brazil with an order book of around USD 95 million as of date. 

KPTL’s management informed that Fasttel has a track record of revenue growth of more than 25 per cent CAGR over the last 5 years along with consistent profitability. It has experienced manpower which does in-house engineering, procurement, land survey, planning, environment clearances & construction. Brazil is a large and well-regulated power transmission & distribution market with sizeable investment planned in the next 10 years. 

During Friday’s morning session, the stock of KPTL was trading 2.5 per cent higher at Rs 371.80 from its previous close of Rs 362.90 on BSE.