Action Construction Equipment Limited (ACE) has announced the approval of a Business Transfer Agreement (BTA) with its joint venture company, ACE KATO Private Limited. The agreement, approved by the Board of Directors on 30th April 2026, involves the transfer of ACE’s Heavy Cranes Business to ACE KATO on a slump sale basis. This strategic move will see the transfer of all rights, titles, and interests related to the business, which includes the manufacturing of truck cranes, crawler cranes, and rough terrain cranes.
The Heavy Cranes Business contributed ₹85.77 crore to ACE’s standalone revenue for the financial year 2024-25, accounting for 2.58% of the company’s total revenue. The transaction is expected to be completed on or before 30th June 2026, subject to the fulfillment of the terms and conditions outlined in the agreement.
The consideration for the transfer will be paid by ACE KATO through the issuance of ACE subscription shares, as defined in the Investment and Shareholders Agreement. ACE KATO Private Limited is a joint venture company formed under an agreement between ACE and KATO Works Co., Ltd., Japan. Initially, ACE will hold 99% of the issued and paid-up capital of the JV company. However, upon completion of the transaction, the shareholding will be restructured to a 50:50 split between ACE and KATO.
The transaction is classified as a related party transaction but is being conducted at arm’s length. It does not form part of any Scheme of Arrangement and complies with the relevant regulations, including Regulation 37A of the SEBI LODR Regulations.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).