Texmaco Rail & Engineering has said it will acquire Jindal Rail Infrastructure from its existing security holders for a total consideration of around Rs 615 crore.
In an exchange filing, the company stated that the acquisition will involve purchasing securities from JRIL’s existing security holders, namely JITF Urban Infrastructure Service (JUISL) and Siddeshwari Tradex (STPL).
“Board of Directors of Texmaco Rail & Engineering has approved the acquisition of all of the rights, title and interest in all of the securities of Jindal Rail Infrastructure (JRIL) held by the existing security holders JITF Urban Infrastructure Service and Siddeshwari Tradex,” it said.
To formalise the acquisition, Texmaco Rail will sign a securities purchase agreement (SPA) with JUISL and JRIL for the securities held by JUISL. A separate SPA will be executed with STPL for its holdings in JRIL. Texmaco Rail & Engineering will pay JUISL an aggregate consideration amount of Rs 465 crore and Rs 150 crore to STPL, the company said.
“The acquisition will aim towards leadership in special purpose private freight rolling stock both domestic and international; open opportunities for new product lines including other rolling stocks; and contribute to the company’s presence in western India along with unique opportunities for enhanced exports,” Texmaco said.
