EMS Ltd Acquires Additional 14% Stake in Subsidiary
EMS Limited has entered into a Share Purchase Agreement (SPA) to acquire an additional 14% stake (140 shares) in its subsidiary, Mirzapur Ghazipur STPs Private Limited. This acquisition, following a previous intimation on May 29th, 2024, will increase EMS Limited's total shareholding to 74%. The transaction is considered a Related Party Transaction as a director of EMS is also a director in the target company, but it will be conducted on an arm's length basis. The acquisition is expected to be completed within 30-90 days with a cash consideration of Rs. 26.08 Lakhs. The target entity is engaged in the development and installation of Sewage Treatment Plants (STPs) and operates in the same sector as the acquirer, aiming to increase control and support revenue.
Key Highlights
- EMS Ltd to acquire an additional 14% stake in subsidiary Mirzapur Ghazipur STPs.
- Post-acquisition, EMS Ltd will hold 74% of the subsidiary's share capital.
- Transaction is a Related Party Transaction but will be at arm's length.
- Acquisition aims to increase control and support revenue in the STP sector.
- Consideration is cash, with completion expected in 30-90 days.
Price Impact
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