Punj Lloyd acquires 88 pc in SembCorp

New Delhi, June 2: Engineering and construction major Punj Lloyd Ltd (PLL) today acquired a majority stake of 88 per cent in Singapore-based SembCorp Engineers and Constructors (SembE&C) for 352 million Singapore dollars, to expand its geographical reach and portfolio enhancement.

The remaining 12 per cent stake would be acquired by PLL on or before December 31, 2007.

With this acquisition, the company will add airports, jetties, MRT/LRT, tunneling, sewerage among others, to its capabilities in infrastructure domain.

''This entity will contribute significantly to our top-line and will provide our group access to new geographies and enhance our competitive positioning in existing markets. We will also greatly benefit from the experienced and quality manpower as this acquisition will add a very large number of experienced and qualified engineers to our existing talent pool,'' said PLL Chairman and Managing Director Atul Punj.

In the petrochemical sector, PLL would leverage Simon-Carves's, which is a wholly owned subsidiary of SembE&C, capabilities in engineering, procurement and construction of LDPE, PVC, Styrene and refinery processes domain.

At present, Punj Lloyd provides engineering construction services in the oil and gas sector for pipelines, tanks and terminals, process facilities, and in the infrastructure sector- for construction of highways and expressways, power plants and high specification buildings besides value added engineering and plant and facility maintenance.

SembCorp E and C has operations in more than 35 countries and employs more than 1,640 employees worldwide. It recorded revenue of over one billion Singapore dollars for the year ending December 2005.

UNI