Electrosteel Castings Limited has finalized the acquisition of a 70% shareholding in Arabian Water Tech LLC, based in Oman. The company has paid an amount equivalent to OMR 21,000/- for 14,000 equity shares. This transaction, previously approved by the Board of Directors, has resulted in Arabian Water Tech LLC becoming a subsidiary of Electrosteel Castings.
Subsidiary Acquisition Completed
Electrosteel Castings Limited has officially completed the acquisition of a significant stake in Arabian Water Tech LLC, an Omani-based entity. The transaction involved the purchase of 14,000 equity shares, each with a nominal value of OMR 1/-, representing a 70% shareholding in the company. This strategic move, aimed at expanding the company’s overseas operations and asset base, was a key agenda item for the Board of Directors.
Financial Transaction Details
The total consideration paid by Electrosteel Castings Limited for this acquisition amounts to an equivalent of OMR 21,000/-. The payment has been duly remitted, and consequently, the company has received the share certificate for the acquired shares. This successful transfer signifies the formal integration of Arabian Water Tech LLC into Electrosteel Castings’ group structure, making it a subsidiary.
Impact on Company Structure
With the completion of this acquisition, Arabian Water Tech LLC is now officially recognized as a subsidiary of Electrosteel Castings Limited. This development is a result of the approved proposal to invest in and acquire the controlling stake. The company views this acquisition as a positive step towards strengthening its market presence and operational capabilities in the region.
Source: BSE
