Kalpataru Power Transmission Ltd (KPTL) on Friday said its wholly owned subsidiary in Brazil has signed a definitive agreement to acquire 51 per cent stake in Fasttel Engenharia Ltd in the South American country, for USD 8.80 million (over Rs 64 crore).
"Kalpataru Power do Brasil Participações Ltda has signed a definitive agreement to acquire a controlling stake of 51 per cent in Fasttel Engenharia Ltda,Brazil for USD 8.80 million, subject to customary adjustments," Kalpataru Power Transmission Ltd said in a regulatory filing.
Fasttel, founded in 1988, specialises in engineering, procurement, and construction (EPC) and maintenance of power transmission lines, substation and distribution systems across various voltage range up to 750 kV, the company added.
The company mainly operates into three business areas comprising EPC of substation, transmission and distribution network services with revenue of around USD 47 million in 2020 and has a profitable track record.
"The company has a presence in Brazil with an order book of around USD 95 million as on date," it added.
KPTL said the acquisition of Fasttel is in line with its strategy to strengthen its core EPC business and have greater geographical presence in stable and growing markets.
The transaction is likely to close by the end of Q1FY22.
Sanjay Dalmia, Executive Director, KPTL said, “We continue to expand our geographical reach aligned to our vision of being a local player in the global environment. This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American market.
"Fasttel has a track record of revenue growth of more than 25 per cent CAGR (compounded annual growth rate) over the last 5 years along with consistent profitability".
Shares of Kalpataru Power Transmission Ltd were trading 0.70 per cent higher at Rs 365.45 apiece on the BSE.