Texmaco Rail & Engineering today said its board has approved acquiring a majority 76 percent stake in Bright Power for Rs 100 crore. "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 for the acquisition of majority equity share capital (76%) of Bright Power at an enterprise value of about Rs 100 crore," Texmaco Rail & Engineering informed the BSE today. The acquisition will be funded through internal accruals of the company, it said.
Bright Power is an engineering procurement and construction company, 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 78.2 crore in FY2014-15.
The objective 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, Texmaco said. The final transaction is expected to complete in two-three months, subject to certain approvals/conditions and due diligence, with definitive documentation expected to be executed between the parties within next 45 days, the company said. Texmaco Rail & Engineering Ltd is a multi-discipline engineering and infrastructure firm with 5 manufacturing units in Kolkata.
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