Gujarat-based HLE Engineers has entered into an agreement with the promoters of BSE-listed Swiss Glascoat Equipments Ltd (SGEL) to acquire 51 per cent stake for Rs 62 crore.
"We are acquiring controlling stake of 51 per cent in SGEL for Rs 62 crore, for which we are making an open offer of shares and convertible warrants. Post acquisition, the public shareholding will be 49 per cent in SGEL," HLE Chairman Himanshu Patel told PTI here.
HLE Engineers is making an open offer to acquire up to 16,90,000 equity shares of Rs 10 each at a price of Rs 130 per fully paid-up equity shares of SGEL, representing 26 per cent of emerging voting equity share capital, the company told BSE in a communique.
HLE Engineers is one of the largest manufacturers of filtration and drying equipment for chemical industry.
SGEL specialises in the design and manufacturing of carbon steel glass lined equipment.
Post acquisition, the HLE Engineers group aims to double the turnover to Rs 500 crore and increase exports substantially within 3 years, Patel said.
"We look forward to a seamless ownership transition and we will strive to continue to service the customers with a larger range of products meeting the highest international quality standards," he added.
SGEL Managing Director Sudarshan Amin: "The transition of SGEL to the HLE Group is advantageous to the customers, shareholders and employees. The company shares a lot of common synergies in terms of manufacturing, procurement and marketing with HLE, which will be beneficial to the various stakeholders.
Innergize Solutions acted as the advisors to this transaction.
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