Hindustan Construction Company Ltd (HCC), a Mumbai-based construction firm, is acquiring a controlling stake in Karl Steiner AG (KSAG), a realty firm in Switzerland. The board of directors of the company has approved the acquisition plan, it said in a statement.

The transaction is subject to regulatory approvals. HCC is expecting to close the deal in the first quarter of FY 2010-11. KSAG is claimed to be the second largest operator in the Swiss real estate market.  

HCC is acquiring around 66% stake in KSAG for CHF 35 million ($33 million). KSAG plans to utilise the fund to strengthen its Swiss operation, and also look for growth opportunities in residential and commercial construction market in India. KSAG will issue fresh shares to HCC against the transaction, added the statement. 

The statement further added that Peter Steiner, the owner of KSAG, will sell his remaining 34% stake in the company in 2014. KSAG specialises in turnkey developments of new buildings and other refurbishment activities. It is headquartered in Zurich and has operations in Basel, Bern, Geneva, Lausanne and St. Gallen.

HCC has been quite active in strategic tieups with domestic and overseas majors in recent times for expanding its business in construction space. Apart from investing in other’s project, it has also been raising funds for its own projects. In January, HCC has raised Rs 250 crore from ICICI Bank Ltd through quasi-equity instruments for Lavasa project, a hill township being developed by the company near Pune. The fund has been raised through its subsidiary, Lavasa Corporation Ltd, which plans to invest Rs 50,000 crore in the project. 

The shares of HCC were traded at Rs 142.75, down by Rs 0.05 or 0.04%. Net sales and net profit of the company in 2009-10 were Rs 3,560.31 crore and Rs 99.53 crore, respectively.

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