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BEML plans to acquire Brazilian firm CCC

Written by: Staff
Google Oneindia News

New Delhi, June 24: State-owned construction equipment company Bharat Earth Movers (BEML) is eyeing a 100 per cent stake in Brazilian firm Companhia Comercio E Construcoes (CCC) for an undisclosed amount.

''We are in talks with the group and hope to complete the buyout by next year. In the initial phase we hope to invest close to about 100 crore in the company raised through our follow-on public offer,'' said BEML Director (Mining and Construction) M Poongavanam.

Currently, the company have a joint venture agreement with CCC for manufacture and supply of rail wagons and bogies, mining and construction equipment and spares for the Brazilian market.

It will acquire all the assets of CCC, which includes an assembly unit, Mr Poongavanam added.

The company has announced a follow-on public offer (FPO) of 49 lakh shares of Rs 10 each through a 100 per cent book-building for raising Rs 450 crore.

The price band will be decided at least one day prior to the issue opening date. The issue opens on June 27, 2007 and closes for subscription on July 3, 2007.

The existing equity shares of the company, offered through FPO are proposed to be listed on the BSE, NSE and the Bangalore stock exchange.

It will constitute 11.77 per cent of the fully diluted post-issue paid-up capital of the company.

The issue proceeds will fund the expansion of metro coach manufacturing facility at Bangalore and capital expenditure including upgradation of current facilities. A total of Rs 900 crore will be raised through the public issue and internal accruals.


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