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Blackstone Pays $65mn For 25% Stake In Hyderabad Firm
Posted by Srini Uppala | November 7, 2007 | 288 views
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Loading ...Blackstone Group, the world’s biggest private equity fund, will be investing $65 million in Hyderabad-based engineering firm MTAR Technologies for picking up an estimated 25 per cent stake.
The funding will be made in a mix of primary and secondary equity after getting necessary regulatory approvals, a company statement said here.
MTAR is a leading player in precision engineering. It makes machined parts for nuclear power reactors and engine components for aerospace and defence applications.
“Blackstone will acquire a significant stake in MTAR, which will come to around 25 per cent,” sources close to the deal told media.
Blackstone earlier this year had acquired majority stake in garment firm Gokaldas Exports Ltd and a small stake in Nagarjuna Construction Company.
Post-acquisition, MTAR will continue to be led by its existing management, though Blackstone is likely to induct two members onto the board, the sources said.
MTAR will use the fund to set up two energy plants in Hyderabad, the sources said, adding the company also has plans to expand its current workforce.
Currently, MTAR is supplying critical components to key players in the nuclear and aviation sectors which include Nuclear Power Corporation of India Ltd, Indian Space Research Organisation and Hindustan Aeronautics Ltd.
First Securities was the advisor for the transaction.
SOURCES:
Economic Times
Topics: Business News |
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