L G Balakrishnan & Bros Ltd to Acquire LGB Forge Ltd's Pondicherry Plant

In a significant development, the Board of Directors of L.G. Balakrishnan & Bros Limited convened on December 02, 2023, and granted approval for the company to enter into a Business Transfer Agreement (BTA) with LGB Forge Limited (LGBFL). The agreement entails the acquisition of LGBFL's Pondicherry Plant as a going concern, on a slump sale basis, for a lump sum consideration of Rs. 15 Crores. The transaction involves the transfer of the plant without assigning specific values to individual assets and liabilities, with detailed terms and conditions outlined in the agreement.

The completion of the slump sale transaction is contingent upon obtaining necessary approvals and satisfying the respective conditions precedent by both LGB and LGBFL. The acquisition of LGBFL's Pondicherry Plant is expected to bolster L.G. Balakrishnan & Bros Ltd's machining activities and broaden its product range.

The anticipated completion date for the acquisition is on or before February 1, 2024, subject to the satisfactory fulfilment of conditions precedent specified in the Business Transfer Agreement. This strategic move underscores L.G. Balakrishnan & Bros Ltd's commitment to expanding its operational capabilities and product offerings in line with its business objectives.

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