Action Construction Equipment approves business transfer agreement with ACE KATO

Business Desk — Thu, 30 Apr 2026 11:29:21 +0000

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).

Action Construction Equipment and KATO form joint venture with initial capital of Rs 10 lakh

Business Desk — Thu, 12 Mar 2026 15:50:30 +0000

Action Construction Equipment Limited (ACE) has entered into a Joint Venture Agreement with Japan-based KATO WORKS CO., LTD. The agreement, executed on 11th March 2026, aims to leverage KATO’s global technology and engineering expertise with ACE’s manufacturing capabilities in India.

The joint venture, named ACE KATO Private Limited, will operate as a private limited company under Indian law. Both ACE and KATO will hold equal 50% stakes in the new entity, which will have an initial authorised share capital of ₹10,00,000 and a paid-up share capital of ₹5,00,000. The agreement allows each company to nominate two directors to the board of the joint venture.

The collaboration is expected to enhance product competitiveness by improving performance and cost efficiency, while also exploring new growth opportunities in domestic and international markets. The joint venture will be subject to a 10-year lock-in period, and any future related party transactions will be conducted at arm’s length.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

ACE KATO Private Limited | Business Upturn

Action Construction Equipment approves business transfer agreement with ACE KATO

Action Construction Equipment and KATO form joint venture with initial capital of Rs 10 lakh