KEC International’s Board of Directors has approved the sale of 99% of equity shares and 100% of preference shares held in its subsidiary, KEC Investment Holdings, to KEC Towers LLC. This restructuring aims to consolidate international tower manufacturing facilities under KEC Towers LLC. The transaction is valued at a minimum of USD 118.30 million. The Board meeting concluded at 4:30 p.m.
Strategic Subsidiary Restructuring
KEC International announced that its Board of Directors has approved a strategic restructuring move involving its subsidiaries. The decision, made during a meeting held on January 30, 2026, involves the sale of a significant stake in KEC Investment Holdings.
Details of the Share Sale
The approved transaction includes the sale of 99% of the equity shares (ordinary shares) and 100% of the preference shares held by KEC International in its wholly-owned subsidiary, KEC Investment Holdings. The buyer is another wholly-owned subsidiary, KEC Towers LLC.
Rationale Behind the Decision
This sale is intended to create a unified holding-cum-operating structure. The goal is to house all international tower manufacturing facilities under KEC Towers LLC, streamlining operations. The announcement confirms that the ultimate ownership of the Company over the subsidiaries will remain unchanged.
Financial Impact and Valuation
The consolidated income of KEC Investment Holdings for the financial year 2024-25 was Rs. 1,325 Crore, representing 6.06% of the total consolidated revenue of KEC International. The net worth of KEC Investment Holdings was Rs. 953.77 Crore, which is 17.84% of the consolidated net worth of KEC International Limited.
Transaction Value and Completion
The deal is valued at a minimum of USD 118.30 million. This consideration will be met through the issuance/allotment of equity shares and/or preference shares of KEC Towers LLC to KEC International and/or cash consideration. The expected completion date for the sale/disposal is April 1, 2026, subject to required approvals or other mutually agreed dates.
Source: BSE
