Essar to buy out Avaya in AGC, make open offer | business | Hindustan Times
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Essar to buy out Avaya in AGC, make open offer

business Updated: May 30, 2010 22:25 IST
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Ruias-controlled Essar Group will buyout the entire 59.1 per cent stake of Avaya in AGC Networks, a converged communication solution provider, for around Rs 206.2 crore ($44.5 million). The acquisition, which values AGC at Rs 245 per share, would be done through Essar Services Holdings Ltd (ESHL).

As per Securities and Exchange Board of India (SEBI) guidelines, Essar would be making an open offer for 20 per cent shares on Monday. “Total size of this off-market transaction would be around Rs 78 crore, at Rs 274 per share, if all the 20 per cent shares get tended,” said Aparup Sengupta, managing director and global chief executive officer of Aegis.

Following the open offer, Essar Group would own 79.1 per cent of AGC at total payout of approximately Rs 284.2 crore. AGC, earlier known as Avaya GlobalConnect Ltd, has subsidiaries in Australia and New Zealand. Essar Group would assume both these overseas subsidiaries.

“Essar would benefit immensely from the depth and width of expertise AGC Networks has. We have a definitive plan to grow this business as we aim for bigger chunks of customer spends,” said Sengupta.