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Texmaco Rail & Engineering Ltd has said it planned to acquire a majority stake in a private EPC company. In a statement to the stock exchanges, the company said the Texmaco Rail management had approved acquisition of 76 per cent stake in Bright Power Projects (India) Pvt Ltd.
Texmaco Rail would sign a non-binding term-sheet with the promoters of Bright Power for the “acquisition of majority equity share capital (76 per cent) at an enterprise value of about Rs 100 crore, subject to applicable conditions”. The company further said the acquisition would be funded out of internal accruals.
The definitive documentation was expected to be executed in the next 45 days.
The final transaction was expected to be completed in the next three months subject to certain approvals/conditions and due diligence.
Texmaco said Bright Power is an EPC company specialising in overhead electrification 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,” a Texmaco Rail note said.
The company said acquisition of a controlling stake in Bright Power was to enter into overhead electrification solutions.
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