The Hindu : Business : McNally buys stake in Sayaji

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Saturday, May 17, 2008
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Business

McNally buys stake in Sayaji

Special Correspondent

Deal size is Rs. 59 crore
Open offer next week

KOLKATA: McNally Bharat Engineering (MBE), which is poised to become the biggest company in the B. M. Khaitan group, on Friday signed a memorandum of understanding (MoU) with the promoters of Sayaji Iron & Engineering Co. Ltd., a Vadodara-based family-run business, which will help expand MBE’s product range, Deepak Khaitan, MBE Chairman, said. Announcing this at a press conference, he said the company was scouting for acquisitions in the U.S. and Germany. “We are looking for technology and we are also open to joint ventures, if acquisitions are not possible”, he said.

The MoU with Sayaji entails acquisition of 68.3 per cent shares representing the holding of the existing promoters for Rs. 59 crore at Rs. 221.60 per share. An open offer would be made next week as per Securities and Exchange Board of India (SEBI) guidelines. Sayaji is listed on the Hyderabad and Delhi stock exchanges. Sayaji has eight marketing offices across the country and makes a wide range of equipment used in crushing, grinding, screening and road-making, besides having well absorbed overseas technology. MBE will also use the brand which he said had a good market. The Gujarat-based company hoped to close 2007-08 with an estimated topline of about Rs. 63 crore with a pre-tax profit of about 20 per cent.

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