Kaynes Technology India Limited has announced that its indirect wholly owned subsidiary, Kaynes Canada Ltd., has entered into a Share Purchase Agreement (SPA) to acquire 100% equity in August Electronics Inc., a Canadian company, for a consideration of CAD 57 million (subject to adjustments).

The agreement, signed between Kaynes Canada Ltd. and several unrelated individual and corporate shareholders of August Electronics, outlines that Kaynes Technology India Limited will guarantee the payment of the purchase price on behalf of its subsidiary, should Kaynes Canada fail to fulfil the payment obligations. Kaynes Holding Pte. Ltd., the parent of Kaynes Canada, and Kaynes Singapore, also wholly owned by Kaynes Technology, are parties to this arrangement.

No Impact on Control or Management

The transaction will not result in any change in the management or control of Kaynes Technology India Limited. August Electronics Inc., the acquisition target, is unrelated to the promoter or group entities of Kaynes Technology as of the execution date of the agreement.

Key Terms of the Agreement

• Acquisition of 100% stake in August Electronics Inc.
• Total consideration: CAD 57 million, plus applicable adjustments.
• In the event of a payment default by Kaynes Canada, Kaynes Technology and Kaynes Singapore will fulfill the payment obligations.

There is no shareholding in August Electronics by Kaynes Technology prior to the transaction, and the acquisition does not fall under the category of a related party transaction.

No Additional Liabilities or Restrictions

Apart from the financial commitment related to the acquisition payment, the agreement does not impose any further restrictions or liabilities on Kaynes Technology India Limited. No shares are being issued as part of the deal, and no board nominations or conflict of interest situations have arisen from the agreement.

This acquisition is part of Kaynes Technology’s strategic expansion in North America, and the company continues to evaluate global opportunities to enhance its capabilities and footprint.

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