AlA Engineering Limited on Wednesday announced that the Mining Products business of Mining Products and Service Pty. ttd., (MPS), Australia has been transferred to VEGA MPSPTYLIMITED,(VMPS),Australia and Vega Industries (Middle East) FZC, UAE (VEGA ME), a Wholly Owned Subsidiary of the Company has acquired 30 percent stake in VMPS, Australia at a total consideration of AUD 7,860,000., the company annopunced through an exchange filing.
VEGA Industries (Middle East) FZC (VEGA ME), a wholly owned subsidiary of AlA Engineering Limited (AlA), facilitated the purchase, acquiring the shares of VMPS for a total consideration of AUD 7,860,000. The transaction has been completed with the payment of the purchase consideration to the promoters of VMPS on October 11, 2023, at 08:59 A.M.
VMPS, a proprietary limited company incorporated on June 28, 2023, specializes in the design and supply of mining liners, along with other essential mining components. They offer process engineering, project management, and quality control capabilities tailored for the mineral processing industry. This strategic acquisition is aimed at strengthening AlA's mining liner business.
Notably, VMPS is a newly formed company, to which the entire mining products business of Mining Products and Service Pty. Ltd., Australia (MPS), has been transferred. Despite its recent incorporation, VMPS has already demonstrated substantial financial performance:
Turnover and profit three years
In the fiscal year 2019-2020, they recorded a turnover of 31.09 million Australian Dollars, which increased to 32.49 million AUD in 2020-2021 and further surged to 39.26 million AUD in 2021-2022. Concurrently, their profitability remained robust, with a profit of 6.46 million AUD in FY2019-20, 6.86 million AUD in FY2020-21, and 6.05 million AUD in FY2021-22.
The acquisition is expected to have a considerable impact on AlA Engineering Limited's mining liner business, with VEGA ME having an option to acquire an additional 40 percent stake in VMPS over the next three years.
The purchase was executed as a cash transaction, with 30 percent shares being acquired at a total consideration of 7.86 Million AUD.
AlA Engineering Limited shares
The shares of AlA Engineering Limited on Wednesday at 11:30 am IST were at Rs 3,451.60, down by 0.33 percent.