IVRCL Infrastructures & Projects on Wednesday said it was acquiring 70 per cent stake in Hindustan Dorr-Oliver from the Chhabria family's Jumbo World Holdings and their associates for Rs 53.9 crore (Rs 539 million). The sum includes a non-compete fee.
The Hyderabad-based company will make an open offer to other shareholders of Hindustan Dorr-Oliver to acquire a minimum of 20 per cent in the company, in compliance with the Securities and Exchange Board of India's regulations. The open offer is priced at Rs 150 a share.
Sudhir Reddy, vice-chairman and managing director of IVRCL, said, "The capabilities and prequalifications of Hindustan Dorr-Oliver in the water and environment sectors make the deal an excellent fit for us. This will enable the company to jointly qualify and bid for large turnkey projects in these sectors. The design and technical expertise of Hindustan Dorr-Oliver, coupled with its manufacturing ability and infrastructure, adds tremendous strategic value to the company."While Hindustan Dorr-Oliver's turnover in 2004-05 was approximately Rs 75 crore (Rs 750 million), IVRCL through its synergy of bidding for high-value turnkey projects, aims at achieving 100 per cent growth in its turnover annually.