Tube Investments To Acquire 67 Pc Stake In Kcaltech System India For ₹62 Cr
Date
11/28/2024 5:00:41 AM
(MENAFN- Live Mint) New Delhi, Nov 28 (PTI) Murugappa Group firm Tube Investments of India Ltd on Thursday said it will acquire a 67 per cent equity stake in the Indian arm of South Korea's KC Altech Co Ltd for ₹62 crore.
The company has executed a definitive agreement for subscription of a 67 per cent equity stake in Kcaltech System India Pvt Ltd (KCAL India), a subsidiary of KC Altech Co Ltd, the Tube Investments of India (TII) said in a statement.
"This strategic Acquisition will enable TII to strengthen its position in the growing automotive sector, particularly in the domain of aluminium tubes and parts used in heating, ventilation, and air conditioning (HVAC) systems for automobiles," it added.
The proposed investment will support KCAL India's expansion plans, including increasing its manufacturing capabilities, the company added.
The acquisition will be carried out "by way of subscription to fresh equity shares for a consideration of about ₹62 crore", TII said in a regulatory filing.
The acquisition is expected to be completed on or before January 31, 2025, subject to satisfactory completion of the conditions in the agreement.
"Through this acquisition and the planned expansion of KCAL India, we are entering the growing automobile HVAC ecosystem.
This move will enable us to tap into the expanding market for aluminium components used in automobile HVAC systems, aligning our capabilities with the increasing demand for these solutions in India," TII Managing Director Mukesh Ahuja said.
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