Singapore-based property group Rowsley Ltd has agreed to acquire a 34.72 per cent stake in Baring PE Asia-backed RSP Design Consultants (India) Pvt Ltd, a privately held architectural services company, for S$20.6 million ($14.8 million or Rs 95 crore) in cash, it has disclosed.
The deal values the Indian firm at Rs 274 crore ($42.6 million). Rowsley said the acquisition price is 7.5 times the unaudited net profit after tax of RSP Design for the financial year ended March 31, 2015.
RSP Singapore, an arm of Rowsley Ltd, entered into a sale and purchase agreement with its former vendors—Albert Hong Hin Kay, Lee Kut Cheung, Lai Huen Poh, Liu Thai Ker and Hud Abu Bakar—to acquire Venture India Pte Ltd (Venture India), which owns the minority stake in RSP Design, a limited liability company in India, it said in the statement.
The acquisition was funded by Rowsley’s internal resources and part of the proceeds from its recent S$100 million medium term notes issue, it said.
Other investors of RSP India include its management, which owns 20 per cent stake, and Baring PE Asia with a 45 per cent stake. Baring PE had picked 45 per cent stake in RSP Design in 2008 from its promoters. Although the deal value was not disclosed, The Economic Times had reported citing sources that it had invested $100 million in the Bangalore-headquartered firm.
“The purchase has brought our significant and profitable India operations back into Rowsley, and is in line with the Group’s strategy to expand in high growth markets,” said Rowsley group chief executive officer Lock Wai Han in the statement.
With over 360 employees and six offices across the country, RSP Design provides project management, building design consultancy, master planning, civil, structural, and mechanical and electrical engineering, interior design and landscaping design services in India.
The firm was established in 1996 and has developed projects such as Microsoft campus in Hyderabad and the International Technology Park at Bangalore.