Readymade Steel to acquire Singapore-based KH Foges

Readymade Steel (RMS) today said it will acquire a majority stake in Singapore-based building and construction firm, KH Foges Pte Ltd for an undisclosed sum.

The acquisition will help the company in entering the specialised segment of foundation engineering, it said in a filing to the Bombay Stock Exchange (BSE).

"...It has, through its wholly owned subsidiary in Singapore, entered into share sale and purchase agreement to acquire substantial majority stake in KH Foges Pte Ltd," the company said.

KH Foges specialises in bored cast in-place concrete piling and driven piling foundation work, providing services including design, supply, construction and project management.

 

"The proposed acquisition is significant considering the robust demand outlook in Singapore and growing demand for ground engineering services in India," RMS said.

The to-be acquired company is registered as a specialist builder with the Building and Construction Authority, Singapore and has annual turnover of about Rs 300 crore, RMS said, adding that KH Foges has an outstanding order book of an equivalent amount.

"The acquisition would result in diversifying the product and service portfolio of RMS, complementing our vision of creating a complete infrastructure solutions company. It is a step towards integration, diversification and value creation," Readymade Steel Managing Director Anil Agrawal said.

Readymade Steel, in business since 2006, manufactures reinforcement steel bars. According to the filing, it has been associated with projects like Mumbai Monorail, Sahar Elevated Access Road and Nashik Elevated Corridor.

Shares of the company closed today at Rs 76.80 apiece on the BSE, down 5.24% from the previous close.