Hochtief in talks to acquire majority stake in Coastal Projects
06 January 2012
Private equity investors and promoters of Coastal Projects are in talks with German construction major Hochtief AG to sell a majority stake, in a deal that will value the Hyderabad-based infrastructure company at over $500 million (Rs2,649 crore), The Times of India (TOI) today reported, citing three separate sources familiar with the process.
Baring Asia, Sequoia Capital, Fidelity Investment Management and Deutsche Bank had acquired a combined 32 per cent stake in Coastal Projects for about $410 million.
The promoters of the company, along with a New Delhi-based business group, hold the remaining.
Coastal Projects chairman and managing director S Surendra said that the company was in talks, but it was premature to disclose further, the paper said.
"It is correct that Hochtief has been considering to expand activities in India. There has been speculation about possible acquisition targets. Hochtief has taken no decision . As this is a process in progress, we cannot provide any further information," said Hochtief's head of media relations Christian Gerhardus in an emailed response to the TOI.
Coastal Projects, a civil engineering and construction firm, specialises in tunnelling and underground excavation for hydro-electric irrigation, rail, road and mining projects.