Mumbai-based construction material maker Kridhan Infra Ltd (KIL, formerly known as Readymade Steel Ltd) has agreed to acquire Singapore-based civil engineering company Swee Hong Ltd for S$8 million (about $5.7 million).
As per the deal, Kridhan Infra’s subsidiary Readymade Steel Singapore (RMS Singapore), will subscribe to 300 million shares and 500 million warrants in the company.
The acquisition is, however, subject to successful completion of various terms and conditions of the term sheet.
Readymade Steel is an investment holding company ultimately owned by Kridhan Infra, a firm incorporated and publicly listed in India. Readymade's subsidiary KH Foges Pte Ltd is a sub-contractor of Swee Hong.
The acquisition will be significant considering the robust demand outlook in Singapore and other countries for civil engineering works and smart cities projects. This would result in the Kridhan moving up the value chain to larger EPC projects, it said in the statement.
Swee Hong is a Singapore-based EPC firm with over 50 years of experience in civil engineering and is listed on the Stock Exchange of Singapore.
Over the years, the company has grown from strength to strength to cover the entire spectrum of EPC services with expertise in tunneling, sewer works, bridge works, roads works, flyovers, among others. The EPC order book of the company stood at S$124 million as on 31 December, 2015.