 Online edition of India's National Newspaper Tuesday, Sep 02, 2008 ePaper | Mobile/PDA Version |
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CHENNAI: Shriram EPC Limited (SEPC) has announced that it has concluded an agreement to acquire a 55 per cent stake in Blackstone Group Technologies Pvt. Ltd. (BGT) for an undisclosed sum. BGT is an engineering consulting firm based in Chennai, offering high value design and engineering services. The acquisition is done partly by buying into a portion of the equity shares from the promoters of BGT and partly through subscription to fresh equity shares at an undisclosed premium. Post-issue of fresh shares, SEPC will hold 55 per cent stake in BGT, which employs around 250 people. The promoters will continue to hold 45 per cent stake. Despite acquiring majority stake, SEPC has decided to let the existing management team to continue to run the day-to-day operations of BGT. Following this, the five-member board of BGT has been reconstituted with the inclusion of three nominees of SEPC. Prior to the issue of fresh shares, BGT had an equity base of Rs. 61.30 lakh. Besides paying for the acquisition of a part of the promoters’ stake, SEPC, according to its spokesman S. Ramnath, has also pumped in an additional Rs. 2 crore (towards subscription to fresh issue of shares) in BGT to beef up its holding to 55 per cent. The spokesman said SEPC would also provide BGT unsecured loans to the tune of Rs. 2.50-3 crore to scale up operations. He said that the agreement had also provided for SEPC to buy out the remaining stake of the promoters three years hence. BGT reported revenue of around Rs. 11 crore in 2007-08. “This acquisition will help us to consolidate our position as a leading provider of engineering services and provide synergies across our business lines of process and metallurgy, biomass power plants and pipe rehabilitation,” a released quoted T. Shivaraman, Managing Director and CEO of SEPC, as saying.
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