Shriram EPC to acquire 55% in BGT

Tuesday, September 2, 2008 at 5:09 am

Shriram EPC (SEPC), on Monday (September 1) said that it has entered into an agreement with Chennai-based Blackstone Group Technologies (BGT) to acquire a 55% stake in the engineering consulting firm. The company, however, did not disclose the amount involved in the transaction.

SEPC’s Managing Director and CEO, T Shivaraman, said that “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, bio-mass power plants and pipe rehabilitation.”

The acquisition of Blackstone substantially enhances SEPC’s manpower resources and provides skill-sets in design and high-value engineering that will strengthen its capabilities especially in the area involving civil and structural engineering, a press release issued in Mumbai stated.

Apart from expanding SEPC’s bouquet of service offerings, this acquisition will improve the proportion of the total contracts that SEPC can potentially bid for. “The acquisition also provides SEPC access to BGT’s marketing teams and infrastructure, both in India and globally,” the release said.

The acquisition will be funded through internal accruals with SEPC acquiring, in part, equity from existing promoters of BGT and also through the allotment of new equity. SEPC will hold 55% of BGT’s equity and it will be consolidated in the books of SEPC as a subsidiary for accounting purposes.

Under the agreement, SEPC has the option to acquire the balance equity after three years, the release said. BGT’s Director, India operations, S Eqbal, will continue to head the organisation and BGT will continue to maintain its distinct entity and service outside clients. A new division will focus on providing engineering services for Shriram EPC’s projects. (PTI)

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Shriram EPC to acquire 55% in BGT

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