Tubacex acquires 68% stake in Prakash Steelage’s unit

Tubacex, a Spanish company engaged in the manufacture of stainless steel tubular solutions, has entered into an agreement to acquire 68 per cent stake in Prakash Steelage’s seamless stainless steel tube business.
The seamless stainless tube division employs about 250 people and has a turnover of about Rs. 175 crores. “The net consideration receivable by Prakash Steelage Ltd from the proposed transaction shall be about Rs. 206 crores and post transaction the company shall hold about 32.5 per cent in the shareholding of the joint venture company. Tubacex S. A. shall infuse a sum of about Rs. 254 crores in the joint venture company towards their shareholding of about 67.5 per cent,” Prakash Steelage informed BSE.
Following its recent acquisitions, Tubacex is expected to be one of the leading manufacturers of seamless stainless steel tubes worldwide and has industrial platforms in Europe, America and Asia.

5