McNally to take 68 per cent in Sayaji for Rs68 crore
17 May 2008
McNally Bharat Engineering will acquire a 68.28 per cent stake in Sayaji Iron & Engineering Co, representing the entire holding of the existing promoters, for Rs59 crore.
The two companies have signed a memorandum of understanding, under which McNally will acquire the shares at Rs221.60 a share. McNally will also make an open offer for another 20 per cent in Sayaji as per the provisions of the Securities and Exchange Board of India (SEBI) takeover code.
Kolkata-based McNally Bharat is promoted by the Williamson Magor group and GP Birla. The company has chalked out aggressive growth plan and has set an ambitious growth target for its equipment business.
The company is also looking at further acquisitions, mostly for technology, said Deepak Khaitan, chairman of the company.
Gujarat-based Sayaji Iron & Engineering, with its plant in Vadodarare and eight marketing offices across the country, manufactures a wide range of equipment used in crushing, grinding, screening, road making, construction and material handling equipment, customised equipment for steel, cement, power and coal plants and complex turnkey projects.
Sayaji is expected to achieve a topline of Rs62-63 crore wi