MRF enters into purchase agreement to acquire 19.10% stake in First Energy 4
MRF said that the purpose of the deal is to purchase solar power as the company is in the process of developing a ground-mounted, grid solar electric generating facility at Ottapidaram, Tuticorin, Tamil Nadu.
Tyre maker MRF Limited today (May 16) informed the BSE that it was entering into a purchase agreement with First Energy 4 Private Limited for the purchase of solar power and will be acquiring up to 19.10 per cent paid-up equity of the company, which will be held during the tenure of the power purchase agreement.
In its information provided to the BSE, MRF Limited said, "Pursuant to Regulation 30 the SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015, we hereby inform you that the Company has entered into a purchase agreement with First Energy 4 Private Limited for purchase of solar power and will be acquiring up to 19.10% paid up equity of the Company, which will be held during the tenure of the power purchase agreement."
What is First Energy 4 Pvt Ltd?
Revealing information about the company it is going to purchase the equity, MRF said, "First Energy 4 Private Limited is a Company incorporated under the Companies Act, 2013, bearing Corporate Identification Number: U40100PN2022PTC216736 and having its registered office at 6th Floor, Office No. 601, Cello Platina F.e. Road Shivajinagar, Pune, Maharashtra- 411 005. The Company is engaged in the business of development, construction, operating and maintaining renewable energy based power plants in India."
What is the target of the deal?
MRF said that the company is in the process of developing/constructing a ground-mounted, grid solar electric generating facility at Ottapidaram, Tuticorin District, in the state of Tamil Nadu, for solar power with a total installed AC capacity of 38.2 MW AC, (Solar Power Plat).
The company informed BSE that the acquisition would not fall within related party transaction (s) and that the promoter/promoter group/group companies won't have any interest in the entity being acquired.
MRF said that the indicative time period for the completion of the acquisition is June 2023.
The acquisition deal will be done in cash and Rs 13.09 crore will be invested to subscribe to the equity share capital of the company.
In its filing to the BSE, MRF said that it would acquire 19.10 per cent of the paid up equity capital of First Energy 4.
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