Kalpataru Power's Sweden arm completes acquisition of 15% stake in Linjemontage Grastrop; stock jumps ~1%

26 Mar 2024 , 03:13 PM

Kalpataru Power Transmission Limited informed that Kalpataru Power Transmission Sweden AB (KPT Sweden), its Wholly Owned Subsidiary in Sweden has completed the acquisition of the remaining 15% equity stake of Linjemontage i Grastrop AB, a Swedish EPC Company headquartered in Grastrop, Sweden. LMG also has two wholly-owned subsidiaries.

The company completed the acquisition of the balance 15% stake on July 7, 2022.

The estimated consideration for the 15% stake shall be approximately USD 11.5 million (approx. Rs91.13 crore).

The Company will acquire 300 equity shares representing 15% of the share capital of LMG through its WOS KPT Sweden.

LMG, founded on March 22, 1993, is involved in three major business areas: EPC of Substations, Transmission & Distribution Networks, and O&M of Electricity Network Services in the voltage range of 0.4 - 400kV.

LMG (along with its wholly-owned subsidiary) has a presence in Sweden and Norway, with an order book of approximately SEK 1.31 billion (USD 137.88 million).

The acquisition will bolster KPT's position in the Nordic market. Because they have the oldest grid network, Sweden and Norway are very appealing markets for transmission line infrastructure. KPTL will benefit from increased investments in grid infrastructure and renewable energy in the Nordic markets.

At around 11.17 AM, Kalpataru Power was trading at Rs362.20 up by Rs4.45 or 1.24% from its previous closing of Rs357.75 on the BSE. The scrip opened at Rs360 and has touched intraday high and low of Rs371.45 and Rs359 respectively.