Financial Daily from THE HINDU group of publications
Wednesday, Feb 22, 2006
Financial Daily from THE HINDU group of publications Wednesday, Feb 22, 2006 |
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Corporate
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Mergers & Acquisitions Siemens signs MoU with Babcock for 50% stake in Flender Our Bureau
Mumbai , Feb. 21 SIEMENS Ltd has announced that it has signed an MoU with Babcock Borsig Ltd to acquire a 50 per cent stake in Flender Ltd for Rs 65 crore (euro 12 million). Flender Ltd is a joint venture between Flender AG and Babcock Borsig, with Babcock Borsig AG and Williamson Magor group each holding 50 per cent equity stake in Babcock Borsig. As announced earlier, the company's board had approved the proposal to acquire this stake in Flender Ltd. Earlier in August 2005, Siemens AG globally acquired a majority stake in Flender AG. With this acquisition, Flender will now be the Siemens company in India. Flender is one of the leading players in the industrial gearboxes segment with revenues of around Rs 85.7 crore for the year ended September 30, 2005. Its current employee strength is around 325 and has a manufacturing facility at Kharagpur in West Bengal. The company caters to the major market segments such as cement, sugar, steel and rubber. "The acquisition of Flender is yet another step in our investment-led growth strategy. This new business will support our portfolio, especially in the drives and motors segments. Further as a part of our strategy, we will continue on the path of mergers and acquisitions that complements our overall portfolio," the company said in a press release quoting Mr J. Schubert, Managing Director. Shares of Siemens moved by 0.75 per cent in Tuesday's trade on BSE.
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