HCC to acquire Swiss firm Rs 150 crore
Ajit Gulabchand-controlled Hindustan Construction Company Ltd (HCC) will acquire 66 per cent stake in Swiss building construction firm Karl Steiner AG (KSAG) for CHF 35 million (Rs 150 crore) in an all-cash deal.business Updated: Mar 15, 2010 23:45 IST
Ajit Gulabchand-controlled Hindustan Construction Company Ltd (HCC) will acquire 66 per cent stake in Swiss building construction firm Karl Steiner AG (KSAG) for CHF 35 million (Rs 150 crore) in an all-cash deal.
The HCC board has approved the proposal. This would be HCC’s first overseas acquisition and would be funded through debt and equity.
As part of the agreement, HCC would acquire the remaining 34 per cent stake from Karl Steiner’s sole owner Peter Steiner by 2014. Peter Steiner will now assume the post of vice chairman and help Karl Steiner’s integration into HCC.
“This acquisition has been carried out for strategic fit both to capture local market opportunity and to expand in Europe,” said Ajit Gulabchand. “KSAG’s rich history and expertise in total services contracting will allow us to undertake the development and construction of world class residential and commercial spaces on a turnkey basis in India.”
The deal would enable HCC to enter the lucrative integrated building construction market, which is estimated at Rs 70,000 crore annually.
This would also give HCC a foothold in the building construction business in emerging markets of India, Europe and Middle East.
Karl Steiner is a 95-year old business that specialises in turnkey development of new buildings, refurbishment and offers services in all facets of real estate construction.
It is the second largest total services contractor in the Swiss real estate market and has annual turnover of CHF 700 million (Rs 3,000 crore).
The transaction is subject to approval of relevant authorities in Switzerland and India. It is scheduled to close in the second quarter of 2010.