Antony Lara Subsidiary Enters Agreement with JFE Engineering for Waste-to-Energy Projects
Antony Lara Enviro Solutions Private Limited, a material subsidiary company of Antony Waste Handling Cell Limited, has entered into a Share Subscription Agreement and Shareholders' Agreement with JFE Engineering Corporation, Japan. This agreement pertains to an investment exceeding ¥ 750 Million across two Special Purpose Vehicles (SPVs) in Andhra Pradesh.The investment is focused on setting up two Waste-to-Energy Projects in the region. The capital will be deployed through a primary issuance of shares by the named SPVs. Under the terms, JFE Engineering Corporation is set to acquire a minority equity stake of 25% in each of the two SPVs.
Currently, both SPVs, Kadapa Renew Energy Private Limited and Kurnool Renew Energy Private Limited, are wholly owned subsidiaries of Antony Lara. Following the completion of the transaction, the shareholding structure for these SPVs is anticipated to feature 75% ownership by Antony Lara and 25% ownership by JFE. Consequently, the SPVs will no longer operate as wholly owned subsidiaries of Antony Lara. The investment into both SPVs will be proportionally made by Antony Lara and JFE in the 75:25 ratio.
Restructuring Details
The transaction involves Antony Lara Enviro Solutions Private Limited finalizing agreements with JFE Engineering Corporation, Japan, for an investment up to ¥ 750 Million in the two SPVs established for the Waste-to-Energy Projects in Andhra Pradesh.The effect of this restructuring details the following shareholding changes:
| Aspect | Detail |
|---|---|
| JFE Engineering Corporation Stake | Will acquire a minority equity stake of 25% in each of the two SPVs. |
| Investment Ratio | Antony Lara and JFE will invest in both SPVs in the ratio of 75:25 through primary issue. |
| Pre-Transaction Status | Both SPVs are wholly owned subsidiaries of Antony Lara. |
| Post-Transaction Structure | The shareholding structure of the SPVs will be 75% held by Antony Lara and 25% by JFE. |
| Subsidiary Status Change | The SPVs shall cease to be wholly owned subsidiaries of Antony Lara. |
| Impact on Company Shareholding | There will be no change in the shareholding pattern of Antony Waste Handling Cell Limited; however, there will be a dilution of the indirect holding of the Company in both SPVs. |
AWHCL Stock Price Movement
Shares of Antony Waste Handling Cell Limited are surging to ₹441.7 as of 11:31 AM today, gaining 5.02% in live trading. The stock maintains strong buying interest, supported by a total traded volume of 116,058 shares.Source:
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