VA Tech Wabag to Sell Romanian Subsidiary for EUR 1.2 Million

VA Tech Wabag Limited, a leading player in the water technology space, has announced a strategic move to optimise its group structure by reducing its exposure to European geographies. During a meeting held on Monday, July 8, 2024, the Board of Directors approved the sale of the Company’s 100% stake in its Romanian subsidiary, Wabag Water Services S.R.L. (Wabag Romania).

Wabag Romania, based at Dimitrie Pompeiu Blv, Nr. 6E, Etaj 13, Sector 2, 020337 Bucuresti, is a wholly-owned subsidiary of VA Tech Wabag GmbH, Austria (Wabag Austria), making it a step-down subsidiary of VA Tech Wabag Limited. The sale aligns with the Company’s strategic focus to streamline operations and reduce its footprint in Europe.

The share transfer process and other related formalities between Wabag Austria (the Seller) and Circular Waters Solutions S.R.L., Romania (the Buyer) are expected to be completed on or before July 19, 2024, contingent upon receiving the necessary approvals as per applicable laws and satisfying the conditions precedent outlined in the agreement.

Wabag Romania, with a turnover of ₹480.20 million, contributed 1.68% to VA Tech Wabag Limited’s turnover for the fiscal year 2023-24. Additionally, Wabag Romania’s net worth stands at ₹801.84 million, accounting for 4.40% of the Company’s net worth for the same period. The sale consideration for Wabag Romania has been agreed at EUR 1,200,000 (One Million and Two Hundred Thousand Euros).

Circular Waters Solutions S.R.L., the buyer, is a company based in Romania and does not belong to the promoter, promoter group, or group companies of VA Tech Wabag Limited. This strategic divestment is a part of VA Tech Wabag’s broader objective to refocus its efforts and resources on other key markets and streamline its business operations.

The successful completion of this transaction will enable VA Tech Wabag Limited to further align its operational focus, reinforce its commitment to delivering sustainable water solutions, and optimise its business structure for enhanced efficiency and growth.

On July 9, 2024, the share price of VA Tech Wabag Limited opened at ₹1,330.00, touching the day’s high at ₹1,352.40, as of 11:56 AM on the NSE.

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