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Power T&D related EPC firm BS to buy assets of four companies in all-stock deal for $147M

Hyderabad-based integrated power transmission and distribution services provider BS Ltd (formerly BS Transcomm Ltd) is planning to acquire four companies on a slump sale basis for Rs 937 crore (approximately $147 million) to expand its presence in domestic and international markets.

The deal would be done entirely through issue of fresh shares, according to a stock market disclosure.

BS would acquire businesses of Hyderabad-based Agarwal Steel Structures India Pvt Ltd, NHS Metals Pvt Ltd and Rajesh Sandhi Infras & Metals Pvt Ltd as well as Visakhapatnam-based Durafast Automotive Pvt Ltd.

The operational businesses to be acquired cover manufacturing of towers as well as components such as anti-theft fasteners, steel structures and transmission line hardware.

“The proposed acquisitions are expected to benefit the company through improvement in bidding strength, enhanced cost control, expansion into railway electrification under EPC, operational and financial synergies and strengthen its foothold in the industry,” said Rajesh Agarwal, chairman and managing director of BS.

With this acquisition, the company aims to achieve revenues of Rs 10,000 crore over two-three years, he added. Majority of the acquisitions are expected to be concluded in six months.

For carrying out the acquisitions, the Hyderabad-based company has proposed to issue up to 223 million equity shares of face value of Rs 1 each through a preferential allotment. This would lead to up to 33 per cent equity dilution.

Meanwhile, the company is looking to raise as much as $150 million through issue of multiple instruments including global depository receipts, American depository receipts, qualified institutional placement, debentures, bonds, warrants or any other securities convertible into or exchangeable with equity shares.

BS is an integrated services provider in the power T&D sector with expertise in transmission line tower manufacturing, EPC in power, turnkey services and undertakes BOOM projects.

For the financial year ended March 31, 2015, it posted a consolidated total income of Rs 2,673 crore, an increase of 15 per cent over the previous year, with net profit rising 7 per cent to Rs 75.19 crore.

BS is an integrated services provider in the power T&D sector with expertise in transmission line tower manufacturing, EPC in power and turnkey services and undertakes BOOM projects.

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