Kalpataru Power: Subsidiary to acquire Swedish EPC company
Kalpataru Power Transmission’s Swedish subsidiary Kalpataru Power Transmission Sweden AB has entered into a definitive agreement for the acquisition of 85 per cent of Linjemontage i Grastrop AB, an EPC company from Sweden, which is headquartered in Grastrop, Sweden along with its two wholly-owned subsidiaries. The acquisition is set to take place for a consideration of approximately US$24 million.
The target company operates in the same line of business as Kalpataru, i.e EPC company, engaged in Power Transmission & Distribution, Substation and O&M of Electricity Network Services. It has a turnover of approximately SEK 694 million (equivalent to US$75 million) as of December 2018. The acquisition has been on the grounds of strategic fit, both to capture local market opportunity and to help Kalpataru expand its presence in the Nordic countries where it does not have any presence. This strategic acquisition will help KTPL with greater access to technology and EPC capability to execute turnkey projects in Nordic countries and Europe.
On Tuesday, Kalpataru Power Transmission was trading at Rs. 447 per share, up 3.05 per cent on the BSE.