Auto component maker Sona BLW Precision Forgings Ltd Ltd on Monday (February 10) said it has amended and restated its business transfer agreement (BTA) with Escorts Kubota for acquiring the railway equipment division (RED), revising the expected completion date from September 2025 to May 1, 2025.
| Company | Value | Change | %Change |
|---|
“…we wish to inform that the Board in its meeting held on today i.e. 10th February 2025 has approved an amendment and restatement of the BTA executed with Escorts Kubota for acquisition of the Railway Equipment Division (RED),” Sona BLW Precision Forgings said in a regulatory filing.
The amendments include adjustments to the timeline for obtaining business-related registrations and changes in payment terms. Under the revised structure, ₹1,600 crore of the transaction consideration will be held in escrow and released in tranches upon meeting specified milestones.
Also Read: Escorts Kubota Q3 Results | Net profit up by 9% to ₹323 crore, declares ₹10 dividend
In addition to the revised BTA, Sona BLW’s board has approved the purchase of a 33,423-square-yard industrial plot in Sector 24, Faridabad, from Escorts Kubota for ₹110 crore.
This land, currently used for Escorts Kubota’s spare parts division, is adjacent to the RED business site and is intended to support Sona BLW’s future expansion. Escorts Kubota will relocate its spare parts operations before the land transfer is completed.
“…we wish to inform you that the board of the company in its meeting held today i.e. 10th February 2025 has approved execution of an agreement for the purchase of a plot of land measuring 33,423 (thirty-three thousand four hundred twenty-three) square yards equivalent to 27,945.885 (twenty-seven thousand nine hundred forty-five point eight eight five) square meters forming part of the industrial plot bearing no. 115 and half of plot no. 114 located in Sector 24, Faridabad, Haryana from Escort Kubota,” Sona BLW Precision Forgings said.
Both transactions are subject to necessary regulatory approvals. Shares of Sona BLW Precision Forgings Ltd ended at ₹530.45, up by ₹0.55, or 0.10%, and Escorts Kubota Ltd ended at ₹3,297.35, up by ₹22.55, or 0.69%, on the BSE.
Also Read: NHPC Q3 Results | Net profit declines 53% to ₹231 crore, declares dividend
