MUMBAI (Commodity Online): Infrastructure firm, Hindustan Construction Company Ltd (BOM:500185) (HCC) will acquire a controlling stake in the Swiss realtor, Karl Steiner AG (KSAG). The company’s board of directors has approved the acquisition in a meeting held today, March 15, 2010.

In a statement issued to the Bombay Stock Exchange (BSE), the company stated that it would acquire 66% stake via issuance of new shares in consideration for a CHJ 35 Million cash investment in KSAG.

KSAG will use the funds raised by the capital increase for its Swiss operations, and the growth of the company’s core business in India’s booming residential and commercial construction market, the company stated.



According to the statement, In 2014, in line with the envisaged succession process, KSAG’s sole downer Peter Steiner would sell his remaining shares to the company. The shares would be sold at a pre-agreed price based on KSAG’s earnings achieved between 2010 and 2013.

KSAG is a total and general services contractor for real estate and specializes in turnkey development of new buildings and refurbishments. The company offers services in all facers of real estate construction and is a market leader in Switzerland.

However, the transaction is subject to regulatory approvals in Switzerland and India and is scheduled to close in the first quarter of the next fiscal.

HCC stocks witnessed a see-saw like movement on the bourses with heavy selling pressure keeping key index under pressure. Stock price remained marginally positive at Rs.143.45 up by 0.4% on BSE in the later morning trades on Monday.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook