Shares of Usha Martin Limited gained almost 2 percent in the morning trade on January 16 after the company announced that its Thailand-based subsidiary, Usha Siam Steel Industries Public Company Ltd (USSIPCL), has inked an agreement to acquire a 50 percent stake in Tesac Usha Wirerope Company Ltd (TUWCL).
"The deal, valued at 74.45 million baht, involves the purchase of 12,50,000 equity shares from Kobelco Wire Company Ltd," the company said in an exchange filing on January 15.
At 9.45 am, the counter was trading at Rs 311 on the National Stock Exchange, up 1.5 percent from the previous close. In the last year, the stock has surged 70 percent.
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TUWCL, which operates in the wire ropes manufacturing industry, recorded a turnover of 129.05 million baht in the December quarter. Although it incurred a net loss of 19.80 million baht, the company's net worth stands at 148.91 million baht, the filing said.
Once the Upon acquisition is done, TUWCL, a joint venture of USSIPCL, Kobelco Wire Company Ltd and Usha Martin Singapore Pte Ltd, will become a subsidiary of USSIPCL and a step-down subsidiary of Usha Martin Ltd.
The transaction, to be finalised by January 31, is not categorised as a related party transaction. None of the promoters, the promoter group, or affiliated companies hold any vested interest in the acquisition, the company has said.
Usha Martin Ltd is a prominent global wire ropes manufacturer, with facilities located in Ranchi and Hoshiarpur in India. It also has units in Dubai, Bangkok and the UK.
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