Mumbai, Sep (EPC News): KEC International (KEC), an RPG Group company announced today that it has signed a definitive share purchase agreement to acquire Jay Railway Signalling Pvt Ltd (formally known as Jay Electrocom Industries), a railways signaling automation systems & technology company. The company undertakes turnkey signaling contracts for the Indian railways.
With this acquisition, KEC is poised to undertake the entire gamut of activities under the railway infrastructure segment. The total purchase consideration for this deal on debt free and cash free basis is Rs13.96 crore (enterprise value) which includes Rs7.01 crore net current assets. The transaction is expected to be completed by end of this month.
Says Ramesh Chandak, Managing Director & CEO, KEC International Ltd, "This is a strategic acquisition for KEC as it enables the company to offer the entire range of services in railway infrastructure projects globally. In order to diversify our portfolio, we took a strategic decision to create a separate railway division and today we have a visibility of Rs450 crore with order book of Rs300 crore an L1 position in another Rs150 crore. We will be a major player in the railway infrastructure segment in the coming years."
EPC News Bureau
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epcworld
| Posted on:9/14/2010 at 12:17 PM