Gammon India board may discuss restructuring plan at upcoming meet
Gammon India’s board is going to discuss the restructuring plans at the upcoming meet.
The company informed that the boards of directors will focus on different options of restructuring of the Gammon Group at an upcoming meeting.
The moves were approved by the CDR cell in June last year. The civil contractor got Rs 13,500 crore of debt restructuring approved which is the largest CDR package approved in financial year 2014.
Mr. Girish Bhat, chief financial officer, Gammon India says that in last year the firm is moving on divesting partial share in an Italian subsidiary, without divulging much details.
An analyst says that the firm hopes to recover at least half or around euro 50 million through sale of share in Italian wing because there is no major profit.
In 2008, Gammon India made three acquisitions in the Italian market and invests nearly 100 million in buying these companies with presence mostly in power equipment segment. In June 2008, Gammon purchased 75 percent shares in Italian turbine maker Franco Tosi Meccanica for euro 40 million and a 50% stake in power sector services firm Sadelmi for euro 7.5 million. In September 2008, Gammon purchased 50 percent shares in Sofinter Group.
As per the annual report of 2012-2013, Sofinter Group posted a net profit of euro 2,369,646 on consolidated revenues of euro 263 million.
The company may sell around 24% stake in the company’s profitable infrastructure arm Gammon Infrastructure. The company, however, clarified that it has not yet sought a formal approval of the board in this regard. The company has proposed to the board to monetise around 200 acres of land, which is expected to fetch R2,000 crore to the company
Source: The Financial Express
CDR cell, Franco Tosi Meccanica, Gammon Group, Gammon India, Gammon Infrastructure, Girish Bhat, Italian subsidiary, Sadelmi, Sofinter Group
