Prakash Steelage today said the Spanish stainless steel maker Tubacex completed acquisition of a majority 67.5 per cent stake in its seamless stainless steel tube division for over Rs 209 crore.
In a BSE filing, the Mumbai-based firm said after signing the Joint Venture Agreement (JVA) on February 13, 2015, the firm transferred its seamless stainless steel tubes and pipes business to the Tubacex Prakash India Pvt Ltd (JV company) in accordance with provisions of the Business Transfer Agreement on July 25, 2015 entered into between the firm and JV company.
The JVA was signed between Prakash Steelage and Tubacex S.A. Spain, it added.
"Pursuant to the transfer of business as per the JVA, the company has received a consideration of Rs 209.16 crore, a major part of which is being utilised to repay the bank debts," it said.
The JV firm has issued equity shares to Tubacex S.A and the company.
"Post closing of the JVA. The company now holds 32.47 per cent of the equity shares and the balance shareholding of 67.53 per cent is held by Tubacex S.A. Consequently, the JV company is no longer a subsidiary of the company," Prakash Steelage said in the filing.
Prakash Steelage will continue to own and operate all its other businesses, including manufacturing of stainless steel welded tubes and pipes and trading business, it added.
Shares of Prakash Steelage today closed flat at Rs 120.10 per share at the BSE.