Wagon and metro rake maker Titagarh Wagons Ltd (TWL) on Wednesday announced acquisition of 50 per cent stake of its French joint venture partner Matiere SAS in Matiere Titagarh Bridges Private Ltd (MTBPL).

Following the deal, MTBPL has become a wholly owned subsidiary of TWL, the company said in a regulatory filing to the BSE.

“Titagarh Wagons Ltd has acquired the shares held by Matiere SAS, France, representing 50 per cent of the paid-up share capital of MTBPL, a joint venture company of TWL,” the company said.

“As a result of the above, the shareholding of the company in MTBPL has changed from 50 per cent to 100 per cent and thus MTBPL has become a wholly-owned subsidiary of the company w.e.f. 14th July, 2020,” it added.

MTBPL manufactures and markets metallic bridges and has a paid-up equity share capital of Rs 1,50,97,640. Its total revenue for the year ended March 31, 2019 stood at Rs 61.05 lakh, it said.

“MTBPL was formed as a joint venture company pursuant to joint venture agreement between TWL and Matiere, where each was holding 50 per cent of its paid-up capital, and pursuant to discussions between the joint venture partners covering strategic aspects of business etc., the transaction was agreed upon and now MTBPL has become a wholly-owned subsidiary of TWL,” the company said.

As per the agreement between TWL and Matiere, the technical know-how for execution of the ongoing contracts as well as manufacturing and selling of bridges by MTBPL in the agreed territories shall continue to be provided by Matiere, it said.

TWL has acquired 75,48,820 equity shares of ₹10 each of MTBPL, representing 50 per cent of its paid-up share capital.

The shares have been acquired at a price of ₹1.80 per share being the fair value, as computed in accordance with the applicable provisions of FEMA/RBI, it added.

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