Bharat Forge Ltd. Announces Internal Restructuring & Acquisition of AAM India Manufacturing Corporation
Bharat Forge Ltd. has announced an internal restructuring exercise for the transition of Defence Business to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL). The Board has approved entering into a definitive agreement(s) with KSSL for transfer of identified assets and other related obligations of the Company to KSSL on an itemized sale basis. The transaction will be undertaken at fair value as determined by an independent valuer, and consideration for transfer will be discharged by way of Optionally Convertible Redeemable Preference Shares (OCRPs) to be issued by KSSL. The Board has also approved the acquisition of AAM India Manufacturing Corporation Private Limited for a deal consideration not exceeding Rs. 7,700 million for 100% of equity shares of AAM India.
Key Highlights
- Internal restructuring for transfer of identified assets and other related obligations of the Company to KSSL.
- Transfer to be undertaken at fair value as determined by an independent valuer.
- Consideration for transfer to be discharged by way of Optionally Convertible Redeemable Preference Shares (OCRPs) to be issued by KSSL.
- Acquisition of AAM India Manufacturing Corporation Private Limited for a deal consideration not exceeding Rs. 7,700 million.
- Acquisition of 100% of equity shares of AAM India.