Deals10 Feb 2025, 09:42 pm
Escorts Kubota Ltd. Announces Sale of Railway Equipment Division and Land for INR 2,700 Crores
AI Summary
Escorts Kubota Limited has approved the sale of its railway equipment division (RED Business) and a portion of land for a total consideration of INR 2,700 Crores. The RED Business will be sold to Sona BLW Precision Forgings Limited for INR 1,600 Crores, with a portion of the consideration kept in escrow and released in tranches upon completion of milestones. The land, measuring 33,423 square yards, will be sold to an undisclosed buyer for INR 110 Crores. Both transactions are subject to requisite approvals and completion of conditions precedent.
Key Highlights
- Escorts Kubota Ltd. to sell RED Business to Sona BLW Precision Forgings Limited for INR 1,600 Crores.
- A portion of the consideration for the RED Business sale will be kept in escrow and released in tranches upon completion of milestones.
- The Company has also approved the sale of a portion of land for INR 110 Crores.
- Both transactions are subject to requisite approvals and completion of conditions precedent.