Welspun Enterprises Limited (WEL) said on August 21 that it has completed the acquisition of 50.10 percent equity shares of Michigan Engineers from Authum Investment & Infrastructure Limited and Sansaar Housing Finance Limited, for an equity investment of Rs 137.07 crore.
Upon completion of the acquisition of 50.10 percent equity shares of Michigan, Michigan will become a subsidiary of Welspun Enterprises Limited,” the company said in its exchange filing.
Welspun Enterprises, a part of the Welspun World, is an infrastructure development company focusing on Road, Water and Wastewater segments. And, Michigan Engineers is a technology-based engineering, procurement and construction company with a focus on underground infrastructure, water infrastructure and sewage infrastructure projects.
The stake acquisiton has been acquired in accordance with the terms of the Share Purchase Agreement that was inked in July this year, the filing noted.
The acquisition is in line with the strategy of Welspun Enterprises to grow the water infrastructure business segment and enable its entry into the tunnelling business, the company said. The acquisition would enable Welspun Enterprises to undertake projects relating to micro tunnelling, segment tunnelling and sewer network rehabilitation, through Michigan, it also stated.
Commenting on the development of the acquisition, Sandeep Garg, Managing Director, Welspun Enterprises Limited, said MEPL's expertise and operational proficiency will provide a competitive edge for them in the field of water and tunnelling solutions. This deal will empower them to expand their operations and establish an unparalleled position in the sector, he also stated.
Welspun Enterprises's exchange filing also highlighted that in recent years, the company has made its presence in the country's water and wastewater segment and has built a formidable order book of over Rs 6,000 crore for the segment.
Expressing his views on the acquisition, Saurin Patel, Managing Director, Michigan Engineers Private Limited, said their collaboration with Welspun Enterprises forms an alignment between a financially robust infrastructure developer and a specialized EPC participant in the water and tunnelling sector.
Saurin Patel added, "We see tremendous synergies between us and are eager to deploy their project management skills and best practices, which will transform our business and further drive growth and profitability.”
In the trading session on August 21, the scrip settled at Rs 309.55 apiece at the BSE, which was 2.16 percent up or Rs 6.55 as against the previous day's close.
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