APAR Industries, through its wholly-owned subsidiary Petroleum Specialities Pte Ltd. (PSPL), has entered into an agreement to acquire 70% of the equity interests in China-based Hebei Jinghuan Cable Co. Ltd. The transaction, valued at approximately RMB 24.85 million, aims to diversify APAR’s manufacturing presence for aluminum overhead conductors and enhance its export-focused operations. This move positions Hebei Jinghuan Cable as a step-down wholly-owned subsidiary of APAR Industries.
Strategic Acquisition in China
APAR Industries announced on October 30, 2026, that its wholly-owned subsidiary, Petroleum Specialities Pte Ltd. (PSPL), will acquire a 70% stake in Hebei Jinghuan Cable Co. Ltd. This Limited Liability Company is incorporated under the laws of the People’s Republic of China. The acquisition signifies a strategic move to expand APAR Industries’ global manufacturing footprint for aluminum overhead conductors.
Deal Rationale and Structure
The primary objective behind this acquisition is to diversify APAR Industries’ manufacturing presence across geographies and to bolster its export-focused operations. Hebei Jinghuan Cable Co. Ltd. is intended to operate as an 100% export-focused enterprise. Upon completion of the acquisition, Hebei Jinghuan Cable will become a step-down wholly-owned subsidiary of APAR Industries. The promoters, promoter group, or group companies of APAR Industries do not have any interest in Hebei Jinghuan Cable, other than the contribution made by PSPL.
Financials and Consideration
The transaction is valued at approximately RMB 24.85 million, based on 70% of the target entity’s Net Asset Value (NAV) at the transaction closing date, with a Price-to-Book (P/B) ratio of 1x. The consideration will be paid in cash and in installments. The first installment of 30% of the purchase price will be paid within 7 business days of the Closing Date. The remaining 70% will be deposited in an escrow account and released upon fulfillment of agreed conditions by the seller. Additionally, PSPL holds a call option to acquire the remaining 30% stake after 5 years, subject to a valuation by a mutually appointed third-party valuer.
Target Entity Background
Hebei Jinghuan Cable Co. Ltd. is currently a non-operating entity. Its primary business post-acquisition will be the exporting of overhead conductors for power transmission and power distribution networks. As of the transaction closing date, its assets will primarily consist of Bank balances (95%) and machinery & equipments (5%). The company reported NIL turnover for FY25 (FY1) and FY24 (FY2), with FY23 (FY3) data marked as ‘N.A.’.
Source: BSE
