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| Exchange Disseminated Time 14/09/2015 19:51:15 | Texmaco Rail & Engineering Ltd has informed BSE that the duly empowered Committee of Board of Directors of the Company at its meeting held on September 14, 2015 has approved the execution of a non-binding term-sheet with promoters of Bright Power Projects (India) Private Limited (“Bright Power”) for the acquisition of majority equity share capital (76%) of Bright Power at an enterprise value of about Rs. 100 crores, subject to applicable conditions. The mentioned acquisition will be funded out of the internal accruals of the Company.
The promoters/ promoter group/ group companies of the Company have neither an interest in Bright Power nor does the proposed acquisition fall within the related party transactions envisaged under the applicable law.
Bright Power is an EPC company, incorporated on January 10, 1994, specialising in over head electrification (OHE) solutions for the Indian Railways. It also serves diverse sectors such as power, utilities, petrochemicals, pharmaceuticals and real estate. Bright Power had a net turnover of Rs. 67.1 crore in financial year 2012-13, Rs. 77.9 crore in financial year 2013-14 and Rs. 78.2 crore (unaudited) in financial year 2014-15.
The object of acquisition of shares of Bright Power by the Company is to enter into OHE Rail Sector which will enable the Company to strengthen its positioning as a total rail solution provider company.
The governmental/ regulatory approvals as may be required for acquisition of shares of Bright Power shall be determined post the due diligence.
The final transaction is expected to consummate over 2 to 3 months, subject to certain approvals/conditions and due diligence, with definitive documentation expected to be executed between the parties within next 45 days. |
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