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Rolta has offload its 50 per cent stake in Shaw Rolta, a joint venture with Stone & Webster Inc (SWRL), a subsidiary of the Shaw Group Inc for a consideration Rs 125 crore.
In addition, Rolta will receive Rs 36 crore over two years for defined services, resulting in a total income of Rs 160 crore from the deal. SWRL paid a dividend of Rs 1 crore each to Rolta and Shaw last fiscal.
SWRL was established as 50:50 joint venture in 2004 to serve as an off-shore engineering centre for Shaw's global projects, and to focus on EPCm (Engineering, Procurement, Construction Management) business in India, including the nuclear energy sector.
To resolve certain exclusivity provisions in SWRL's charter and to empower each partner to follow their respective business strategies, Rolta and Shaw have agreed to place ownership of 100 per cent of SWRL with The Shaw Group, the company said in a press release.
In addition, the Shaw Group has agreed that in the event Shaw decides to pursue nuclear power projects in India, they will address any such opportunity first with Rolta and Rolta will also have the right of first refusal, it added.
Rolta is already working with various Government organisations such as NPCIL and other leading agencies on sophisticated projects in the nuclear power sector, such as the prestigious engineering design project for a significant nuclear reactor system of international importance involving a high level of specialised expertise in conceptual design, system development, finite element analysis, and safety analysis, besides multi-disciplinary engineering competence and domain expertise.
Rolta is also in advanced stages of finalising partnerships with world-leading companies to further strengthen its position in the design and engineering market.
Mr K.K. Singh, Chairman and Managing Director, Rolta, said, “the transaction enables both Rolta and Shaw to pursue their business strategies independently and still provides Rolta the right to leverage The Shaw Group's expertise and track record in nuclear power over the next five years, as and when Shaw desires to serve the Indian nuclear energy market.”
Rolta shares on BSE were up 1.74 per cent at Rs 146 on Wednesday.
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