Kirloskar Ferrous Industries Limited (KFIL), a subsidiary of the Kirloskar Industries Group has approved the acquisition of pig iron plant, owned and operated by VSL Steels Ltd. for Rs 135 crore.
The Company has proposed to acquire movable and immovable assets relating to the pig iron plant of VSL Steels Limited situated at Paramenahally Village, Hiriyur, Chitradurga District, Karnataka State. The Pune based company said in its BSE regulatory filing.
Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; we wish to inform that the Board of Directors of Kirloskar Ferrous Industries Limited [“the Company”] at its meeting held today has granted its in-principle approval for acquisition of movable and immovable assets relating to the pig iron plant of VSL Steels Limited [“the Seller”] for a cash consideration of not exceeding Rs. 135 Crores payable in installments (“the Transaction”); subject to fulfillment of certain commercial conditions, the approval of the Board of Directors and the Members of VSL Steels Limited and such necessary approvals from the statutory, government and regulatory authorities.
The object of proposed transaction is to expand production capacity of Pig Iron of the Company. After completion of the Transaction, the production capacity of pig iron will increase from 3,91,400 Metric Tonnes per annum to 5,41,400 Metric Tonnes per annum.
