Construction and real estate firm Shapoorji Pallonji & Company Ltd and Khurshed Yazdi Daruvala, managing director and one of the partners of Mumbai-based Sterling and Wilson Ltd have agreed to acquire additional 11.38 per cent equity stake in Sterling and Wilson for an undisclosed amount.
Shapoorji Pallonji & Co and Daruvala signed a definitive agreement to acquire 10.7 per cent and 0.7 per cent equity stake, respectively, in Sterling and Wilson from GS Strategic Investments Ltd, an affiliate of Goldman Sachs.
GS Strategic Investments had acquired 11.38 per cent equity stake in Sterling and Wilson in 2008 from Daruvala for $50 million at an average price of Rs 1,166 per share.
Following the stake acquisition, Shapoorji Pallonji and Company’s holding will rise to 65.8 per cent in Sterling and Wilson from the current 55.10 per cent. On the other hand, Daruwala will own 33.33 per cent equity stake in Sterling and Wilson after the acquisition.
The stake acquisition will not result in any change in the management control of the company.
Recently, the fair trade regulator Competition Commission of India (CCI) gave its approval to the proposed stake acquisition. The companies had signed a share purchase agreement on March 20, 2014 and approached CCI for its approval on April 1.
Sterling and Wilson, an associate company of Shapoorji Pallonji & Company, offers mechanical, electrical and plumbing (MEP) services, including designing, erection and commissioning of projects. Shapoorji Pallonji & Company is engaged in construction business in India and overseas.
(Edited by Joby Puthuparampil Johnson)