Divestment30 Apr 2026, 04:51 pm
ACE approves transfer of Heavy Cranes Business to JV for ₹85.77 Cr
AI Summary
Action Construction Equipment Ltd (ACE) board approved the Business Transfer Agreement (BTA) to transfer its Heavy Cranes Business to ACE KATO Private Limited, a joint venture with KATO WORKS CO., LTD., Japan. The transfer, on a slump sale basis, will be for a lump sum consideration paid via ACE subscription shares. The Heavy Cranes Business, which includes manufacturing truck, crawler, and rough terrain cranes, contributed ₹85.77 Crore (2.58% of standalone revenue) in FY 2024-25. The transaction is expected to complete by June 30, 2026, and is considered a related party transaction conducted at arm's length. Post-closing, ACE and KATO will each hold 50% in the JV.
Key Highlights
- ACE to divest Heavy Cranes Business to its joint venture, ACE KATO Private Limited.
- The divested business generated ₹85.77 Cr revenue in FY25, representing 2.58% of total.
- Consideration for the slump sale will be paid through ACE subscription shares in the JV.
- The transaction is a related party deal, expected to complete by June 30, 2026.
- JV ownership will be 50:50 between ACE and KATO WORKS CO., LTD. post-closing.