Infrastructure firm Punj Lloyd said on Wednesday that its Singapore-based arm has sold its entire shareholding of 27.78 per cent in Olive Group Capital Ltd for $20 million, as per a stock market disclosure. The deal involves upfront and deferred payouts.
"The deferred consideration of approximately $11 million shall be received with interest thereon. Punj Lloyd Group had invested $14 million in Olive Group," the company said in the release.
The group had picked the stake around five years ago in Dubai-headquartered Olive Group.
Olive Group offers security solutions with offices in the UAE, the US and the UK. It provides security and risk mitigation solutions, serving energy, national security and critical infrastructure sectors. Its clients include Shell, BP, Exxon Mobil for operations in the Middle East, North Africa and parts of Africa.
Punj Lloyd’s investment in the firm was tied to its exposure in the construction business in conflict zones.
Gurgaon-based engineering, procurement and construction firm Punj Lloyd, once a darling of infrastructure investors, has had a troubled ride over the past few years, due to the slowdown in construction and delayed projects. Private equity major Warburg Pincus exited its six-year-old investment in Punj Lloyd recently.
Earlier this year, an overseas arm of Punj Lloyd failed in its bid to acquire the construction business of ASX-listed Macmahon Holdings Ltd.
(Edited by Joby Puthuparampil Johnson)