MSK Projects: Welspun-Gujarat Takeover

MUMBAI, INDIA (GaeaTimes.com)- Welspun-Gujarat Stahl Rohren, which happens to be pipe manufacturers had declared its decision of taking over a control stake which is linked to the construction firm MSK Projects India. The stake is quoted at 400 crore.

However, the subsidiary of Welspun Infratech shall only be taking charge over 75% stake involved in the MSK Projects India. Welspun-Gujarat had proclaimed the same as they went ahead for a filing at the Bombay Stock Exchange. Welspun Chairman and Managing Director BK Goenka is of the opinion that this decision of acquisition of MSK projects stake will pave their way smooth thus offering them a passage into the world of infrastructure.

Reportedly, as the thing goes ahead the process of acquisition as mentioned by the chairman shall comprise of not one but many a combination of share purchases that would include all the promoters and the associates and investors group that are throwing in pretty good deals to settle for. It is being said that the total investment that comes along with this act of acquiring and acquisition is calculated to be some what around Rs 400 crore. Now, out of this whooping amount of Rs. 400 crore, Rs. 200 crore that pulls in fine shall be utilized as it gets infused into the company as a part of the company”s future growth. Welspun-Gujarat will be backing this huge investment based upon its own flow of funds and its own resources. The Bombay Stock Exchange filling for MSK projects also reports that the transaction that has been approved by the board of directors of both the companies, is expected to shut within a span of 90 days.