The Hindu Business Line : 2 RPG Group cos to merge with KEC International

Mumbai, Jan. 1 Two RPG Group companies — RPG Transmission Ltd and National Information Technologies Ltd (NITEL) — would merge with KEC International Ltd by February.

KEC is also part of the RPG Group and is a global player in the power transmission infrastructure market.

Mr Ramesh Chandak, Managing Director of KEC, told Business Line that by February-end all the regulatory and legal process would be in place and the merger would be completed.Post-merger, KEC will have a turnover of Rs 3,000 crore and promoter holding of 40 per cent. Currently, the promoters’ stake is 34.61 per cent.

The swap ratio has been finalised and four shares of KEC shall be allotted to the shareholders of RPG Transmission holding nine shares. NITEL shareholders holding 15 shares of Re 1 will get two KEC shares of Rs 10 each.

The RPG Group is merging the two companies as they have complementary assets and skills and after the merger will allow KEC to lower costs and enhance delivery. It would be able to bid for large size projects, especially promoted on build-own-operate basis. It will also enable focusing on the fast-growing telecom infrastructure business.

Company history

RPG Transmission, incorporated in 1951, is one of the oldest companies in transmission and railway electrification business in the country. It operates primarily in SAARC countries and has a presence right across the value chain in power transmission, sub transmission, rural electrification, railway electrification and tower testing. It has a manufacturing facility at Deori, Jabalpur with 55,000 MT per year production capacity.

NITEL is a communications network and transmission company, engaged in turnkey projects in the telecom sector. It undertakes contracts for wireline and wireless networks. It is an approved service provider for GSM/CDMA networks.

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