KBL to take over Kolhapur Steel
As per Business Standard Reports, pumps manufacturer Kirloskar Brothers Ltd has decided to acquire Kolhapur based steel castings company Kolhapur Steel Ltd for a consideration of approximately Rs 18 crore. A MoU to this effect was signed by members of a bankers’ consortium comprising the IDBI Bank, Canara Bank and Shree Suvarna Cooperative Bank and representatives of Kirloskar Brothers Ltd at Kolhapur. The sale, which will go through subject to clearance by the Board of Industrial and Financial Reconstruction.
The report mentions that some sources in Kirloskar Brothers have confirmed the signing of the MoU, but declined to offer any details about valuations and how the new acquisition will be accommodated within the group. A senior functionary in the company told Business Standard that "The finer details of the deal are being worked out and a formal announcement will be made in a month’s time."
Kolhapur Steel, as a steel foundry, is suitable for Kirloskar Brothers’ business and offers itself as a ready made addition to its manufacturing capacity.
Kolhapur Steel Ltd has been referred to the Bureau of Industrial and Financial Reconstruction and is presently operating as per a revival package approved by BIFR.
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