Switzerland-based mechanical engineering company Ammann Group Holding AG has fully acquired the stake of its partner in a joint venture.
Gujarat Apollo Industries Ltd, which operates Ammann India Pvt. Ltd, is selling its 30% stake in the JV for Rs 202.43 crore (approximately $26.57 million at current exchange rates).
Gujarat Apollo said in a stock-exchange filing it has voted to allow a subsidiary – AEML, formerly known as Apollo Earthmovers Ltd – to exercise its right under the JV agreement to sell its stake in Ammann India.
The sale of the stake was originally announced in September last year. The JV was initially set up in 2012 after Ammann Group picked up a 70% stake in the consolidated road construction equipment business of the Gujarat-based Apollo Group.
As part of the deal, AEML transferred its portfolio of asphalt plants and the paver business to Apollo Construction Equipment Ltd (ACEL) on a slump sale basis for an aggregate consideration of approximately Rs 280 crore. This valued the business at around Rs 400 crore ($73 million at the time).
Following this, Ammann Group said it would subscribe to fresh equity shares of ACEL, which would be renamed as Ammann Apollo India Pvt Ltd.
“This is a highly compelling strategic partnership, bringing together two groups to realise substantial value for all stakeholders and enhance growth prospects,” Apollo Group founder and lead promoter Anil Patel said at the time.
Shares of Gujarat Apollo Industries ended the day 4.97% up at Rs 178.45 apiece.
The Mehsana-based company was set up in 1986 and is involved in the manufacturing of machinery for the quarrying, mining, and construction.
According to VCCEdge, the data research arm of Mosaic Digital, Gujarat Apollo reported consolidated net sales of Rs 30.04 crore for the financial year ended March 2019. It also reported a consolidated profit-after-tax figure of Rs 10.38 crore for the same period.