Fujiyama Power to acquire 31% stake each in Zayo Energy & Zayo Cables
UTLSOLAR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Board of Fujiyama Power Systems (UTL Solar) approved acquiring an additional 31% stake each in Zayo Energy and Zayo Cables, raising its holding in both from 19% to 50%, making them associate companies. ZEPL makes solar panel components (EVA sheets, junction boxes, backsheets) and ZCPL makes electrical wires and cables. Cost is Rs 31,000 per company. Aim is backward integration to strengthen the solar value chain. Both targets have nil turnover. Cash deals to close in 30 days.
Low-cost acquisitions for backward integration. Minimal near-term financial impact since targets have nil revenue, but supports solar manufacturing value chain strategy.