Kalpataru Power Transmission Limited (KPTL) completed the acquisition of the remaining 15 per cent stake in Sweden-based engineering procurement and construction company Linjemontage i Grastrop AB for USD 11.5 million (around Rs 91 crore). With this, Kalpataru Power Transmission completed the acquisition of the Swedish firm which has been engaged in power transmission and distribution, substation and O&M (Operation & Maintenance) of electricity network service.
In a regulatory filing, Kalpataru Power Transmission said: “We would like to inform you that wholly-owned subsidiary Kalpataru Power Transmission Sweden AB (KPT Sweden) today completed the acquisition of remaining 15 per cent equity stake of Linjemontage i Grastrop AB headquartered in Grastrop. KPT Sweden already holds 85 per cent equity stake in the target company.”
On the rationale behind the move, KPTL said the acquisition will further strengthen KPTL’s position in the Nordic market as Sweden and Norway are very attractive markets for transmission line infrastructure since both have the oldest grid network.
KPTL shall gain from the increased investments towards grid infrastructure and renewable energy into the Nordic markets.
The estimated equity value for 15 per cent stake shall be approximately SEK (Swedish Krona) 121.2 million (USD 11 .5 million) and exact cost of acquisition will be subject to customary closing adjustments.
The Swedish company has been engaged in three main business areas — engineering procurement and construction of substation, transmission and distribution networks and O&M of electricity network services within the voltage range of 0.4-400kV. The company together with its subsidiaries has presence in Sweden and Norway with an order book of around SEK 1.31 billion (USD 137.88 million).
