WTC Trades & Projects, a wholly-owned subsidiary of Brigade Enterprises, has acquired 63% stake in Tandem Allied Services for Rs 51.03 crore.
Brigade Enterprises said the acquisition is aimed at consolidating the group's facility management business under one division and giving it a focused approach in taking it to the next level of growth.WTC Trades & Projects acquired 25,20,000 equity shares of Tandem Allied Services aggregating to 63% of the total share capital for cash consideration of Rs 51.03 crore on 30 June 2022.
Tandem Allied Services is a company incorporated on 19 June 2000 under the companies Act, 1956 located at Bangalore, Karnataka, India with the main objects in the field of facility management and interiors business. The company reported a profit after tax of Rs 7.28 crore on a turnover of Rs 37.69 crore in the financial year ended 31 March 2022.
This acquisition is a related party transaction as Brigade Enterprises holds 37% stake in Tandem Allied Services. Brigade Enterprises said that the valuation of the Tandem Allied Services has been done by a registered valuer and fairness opinion taken from a category 1 merchant banker. The necessary approvals from the audit committee and the board have been taken for the same.
Tandem Allied Services has become a subsidiary of WTC Trades & Projects and a step down subsidiary of Brigade Enterprises due to the acquisition. Prior to this acquisition, Tandem Allied Services was an associate company of Brigade Enterprises.
Brigade Enterprises is Brigade group's flagship company. Brigade group was established in 1986, with property development as its main focus. On a consolidated basis, Brigade Enterprises' net profit tumbled 17.9% to Rs 32.47 crore on a 19.1% rise in revenue to Rs 942.31 crore in Q4 FY22 over Q4 FY21.
Shares of Brigade Enterprises rose 0.19% to Rs 445.05 on the BSE.
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