The Hindu Business Line : IVRCL to acquire 70 pc equity in Hindustan Dorr-Oliver

IVRCL Infrastructures and Projects Ltd has decided to acquire 70 per cent equity in Hindustan Dorr-Oliver Ltd (HDO) from Jumbo World Holdings Ltd and its associates for Rs 53.9 crore, including a non-compete fees.

An agreement to this effect was entered into with Jumbo World Holdings Ltd.

IVRCL on Wednesday informed the BSE that its board of directors at its meeting on April 27 had passed a resolution approving the decision.

IVRCL will make an open offer to the other shareholders of HDO for acquiring a minimum of 20 per cent of the shareholding of the company in compliance with SEBI (SAST).

According to Mr E. Sudhir Reddy, Vice-Chairman and Managing Director of IVRCL, the capabilities and pre-qualifications of HDO in the water and environment sector fit in with the company's growth strategy.

This will enable IVRCL to jointly qualify and bid for large turnkey projects in the water and environment sectors.

The design and technical expertise of HDO, coupled with its manufacturing ability and infrastructure, adds strategic value to the company, Mr Reddy said in a press release.

HDO also occupies a niche position with respect to solid-liquid separation equipment and systems, and complete turnkey project execution in the mineral, pulp, fertiliser and oil sectors.

HDO's turnover for 2004-05 is Rs 75 crore.

The company, through bidding for high-value turnkey projects, aims to achieve 100 per cent growth in annual turnover in the coming years.

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