Gammon India takes controlling stakes in two Italian firms
11 Jun 2008
Mumbai: Engineering and construction major Gammon India Ltd through its overseas subsidiary has acquired controlling stakes in two Italian firms – steam turbine maker Franco Tosi Meccanica and power sector services firm Sadelmi Spa.
Gammon India bought 75.1 per cent stake in steam turbine maker Franco Tosi Meccanica Spa for 40 million euros and a 50 per cent stake in power sector services firm Sadelmi Spa, for 7.5 million euros, the company said in regulatory filing.
Gammon did not disclose financial details of the transaction.
Sadelmi is engaged in balance of plant mainly for the power sector while Franco Tosi Meccanica is engaged in the manufacture of steam turbines for thermal and hydro-electric plants.
The promoter Casti Group retains a 24.9 per cent stake in Franco Tosi, with A Rajan (chairman and managing director of Gammon) taking over as chairman and M Scandellari (former CEO of Franco Tosi) becoming its managing director.
Gammon, which is forming a number of strategic alliances in the Italian power technology market, purchased a 50 per cent stake in an Italian engineering company, Sadelmi, early this year.
Gammon is believed to be in acquisition talks with an Italian boiler manufacturer, Ansaldo Caldaie.