CG’s plan of purchasing equity shares of BTW India from its majority shareholder is facing a setback.
In a stock exchange filing, CG Power & Industrial Solutions Ltd (CG) said that it will be unable to consummate the transaction to purchase share of BTW-Atlanta Transformers India Pvt Ltd (BTW India) from BTW India’s majority shareholder, namely Baoding Tianwei Baobian Electric Co. Ltd.
The reason: the minority shareholder of BTW India has exercised the right of first refusal (ROFR) available to it. China Beijing Stock Exchange, in its letter dated May 7, 2025, communicated this to CG.
Background
On February 14, 2025, China Beijing Stock Exchange organized an online bidding process in which CG was selected as the highest bidder for the proposed acquisition of 90 per cent equity shares of BTW-Atlanta Transformers India Pvt Ltd (BTW India) from its majority shareholder Baoding Tianwei Baobian Electric Co. Ltd, at a bid price of around Rs.165 crore.
However, this was subject to the exercise or waiver of the ROFR available to the minority shareholder of BTW India.
BTW India is engaged in the business of manufacturing transformers and reactors, and its manufacturing capacity is 12,000 MVA.
Editor’s Note:According to information available from reliable sources, BTW-Atlanta Transformers India Pvt Ltd (BTW India) was incorporated in March 2012 as a joint venture between Baoding Tianwei Baobian Electric Co. Ltd. (majority shareholder) and Atlanta Electricals Pvt Ltd (minority shareholder). In FY17, Atlanta Electricals Pvt Ltd transferred its holding in BTW India to another group company Atlanta UHV Transformers LLP. BTW India has its manufacturing plant at Bharuch in Gujarat and started commercial operations in November 2017. The “minority shareholder” referred to in this story is therefore “Atlanta UHV Transformers LLP,” an Atlanta Group company.
Featured photograph sourced from btwelectric.com is for representation only
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