Welspun Infra Projects Pvt Ltd (WIPPL), a part of the Rs 13,500-crore Welspun Group, has acquired a 35%stake for Rs 470-crore in leading project development and contracting firm Leighton Contractors, the Indian arm of Australia's Leighton International.
About 60% of the share capital of WIPPL is held by Welspun Infratech Ltd, a subsidiary of Welspun Corp Ltd (WCL) and 40% by Welspun Infra Developers by way of an investment of Rs 150-crore and Rs 100-crore, respectively. The balance Rs 220-crore is funded by way of an external debt.
"Looking at the tremendous opportunities in the infrastructure space, it is critical to create a corporate structure that will help us to participate and capitalise on future opportunities in the world of infrastructure," WCL's Chairman, B K Goenka, said in a statement here.
Going forward, the entire infrastructure development and contracting business of the group will be managed within Welspun Infratech Limited.
Welspun Infratech Limited has also appointed former Managing Director of Gammon Infrastructure Projects, Parvez Umrigar, as its Managing Director and CEO.
Leighton specialises in engineering, procurement and construction (EPC) contracting and development of projects across sectors such as infrastructure, oil and gas, mining and building.
It has the technical capabilities and expertise to augment Welspun's activities in various segments of infrastructure development including roads, water, pipelines and ports.
Further, the Board of Directors of WCL and Welspun Infratech Ltd (WIL) also decided to re-organise and consolidate the Group's infrastructure business.
In this regard, it was decided that a Scheme of Arrangement under Section 391 to 394 of the Companies Act be filed for an amalgamation of Welspun Infra Developers Pvt Ltd with WIL, the statement said.
The shareholding ratio of WIL post the merger shall be about 65:35 with WCL retaining approximately 65% shareholding in WIL.
