Everest Kanto Sells Entire Stake in Hungarian Joint Venture for Euro 96,000
By Ankur Chandra | Published at: Jul 16, 2025 03:54 PM IST
Mumbai, July 16, 2025 – Everest Kanto Cylinder Ltd (NSE: EKC, BSE: 532684) has announced its exit from the Hungary-based joint venture EKC Europe Zrt., with its Dubai subsidiary, EKC International FZE, selling its entire 80% stake to local partner Rév Gázipari Kft. and associates for €96,000. The move reflects a strategic withdrawal due to geopolitical instability in the region, which disrupted plans for setting up manufacturing lines for seamless high-pressure gas cylinders.
This divestment follows EKC’s earlier decision to bolster stake in its Egypt JV, where EKC International FZE increased its holding to 97% by acquiring an additional 17.01% stake last year.
Deal Snapshot
| Particulars | Details |
|---|---|
| Seller | EKC International FZE, Dubai |
| Buyers | Rév Gázipari Kft. (25%), Rév Group Holding Zrt. (37.5%), Rév András (37.5%) |
| Entity Sold | EKC Europe Zrt., Hungary (80% stake) |
| Consideration | €96,000 |
| Transaction Nature | Complete exit from JV project due to strategic non-pursuance |
| Post-Deal Changes | Company to be renamed; EKC name to be dropped by buyer group |
| Regulatory Approvals | Subject to Hungarian authorities’ clearances |
Strategic Rationale
According to the disclosure filed under Regulation 30 of the SEBI (LODR) Regulations, EKC cited the ongoing geopolitical risks in the region as the key deterrent to setting up manufacturing operations in Hungary. The exit aims to consolidate losses and redirect capital to more viable geographies.
As part of the agreement:
- Share capital of EKC Europe Zrt. will be reduced to reflect accumulated losses.
- The new owners will initiate board resolutions to rebrand the entity, removing EKC’s brand association.
- The transaction involves no related-party status with the buyers, ensuring arm’s-length terms.
Shareholding and Payment Structure
| Buyer | Share % Acquired | Payment Allocation (€) |
|---|---|---|
| Rév András | 37.5% | €36,000 |
| Rév Group Holding Zrt. | 37.5% | €36,000 |
| Rév Gázipari Kft. | 25.0% | €24,000 |
| Total | 100% of 80% stake | €96,000 |
Company Statement
Vishal Totla, Company Secretary & Compliance Officer, confirmed the execution of the share purchase agreement and noted that the transaction is aligned with EKC’s ongoing focus on operational efficiency and rationalised international presence.
About the Company
Everest Kanto Cylinder Ltd is a publicly listed manufacturer of high-pressure seamless gas cylinders catering to industrial, medical, fire-fighting, and CNG applications. The company is listed on NSE and BSE and has a global footprint across India, the UAE, and other geographies through subsidiaries and JVs.
REF: https://nsearchives.nseindia.com/corporate/EKC_16072025125044_EKCLREG30disclosuerHungaryProject16072025.pdf
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