Skanska sells local arm stake for Rs 62 cr

Skanska AB, the Swedish construction major, has exited from Skanska Cementation India (SCIL) by divesting its 80.37 per cent stake to Italian-Thai Development Public Company Ltd (ITD).

The deal was struck at Rs 62.2 crore, Rs 24.8 crore less than the price Skanska paid for acquiring the Indian company in 2000.

Post acquisition, the Thailand company has made an open offer for the remaining 19.63 per cent of the paid-up equity share capital of SCIL at Rs 209. The SCIL scrip yesterday closed at Rs 213.2 on the Bombay Stock Exchange.

If ITD's open offer is successful and crosses 90 per cent, the stock can be delisted. The open offer begins on December 6, and closes on December 27.

K M Thatte, finance director and company secretary, SCIL, said, "ITD has a very aggressive approach for India and they are keen to build and expand the operations here." It is learnt that the new board of Skanska will be constructed on October 29, 2004.

SCIL is involved mainly in road and civil engineering construction on the Indian market, and recorded a turnover of Rs 564.2 crore for the year ended December 31, 2003, and a net profit of Rs 3.89 crore.

Skanska entered India in 2000, through the global acquistion of UK-based Kvaerner Construction, which had an Indian subsidiary.

Skanska has decided to exit India as it indentified it to be a non-core market. Its global strategy is to achieve a leading position in the US and European markets.