KEC International transfers cables business to subsidiary
Author: PPD Team Date: December 30, 2024
KEC International Ltd has transferred its cables business to KEC Asian Cables Ltd (KACL), a subsidiary, via a slump sale on a going-concern basis. A business transfer agreement (BTA) was executed on December 30, 2024.
KACL will pay Rs 1.25 billion to KEC International for the slump sale. KEC International holds a 95% equity stake in KACL, with the remaining 5% owned by KEC Power India Pvt Ltd (KPIPL), a wholly owned subsidiary of KEC International.
On the same day, KEC International’s board approved an investment of Rs 1.19 billion in KACL through a rights issue, along with Rs 62.5 million for KPIPL. These investments will be completed by December 31, 2024, maintaining KEC’s existing equity stake in both entities.