Punj Lloyd - Buys 88% In Sembcorp Arm

Punj Lloyd - Engineering Major

Engineering and construction major Punj Lloyd Ltd has acquired 88 per cent stake in Singapore-based SembCorp Engineers and Constructors (Semb E&C) for Rs 102.6 crore. The acquisition was done through its Singapore subsidiary, Punj Lloyd Pte Ltd. Semb E&C is a wholly owned subsidiary of Singapore based utility group Sembcorp Industries. The remaining 12 per cent in Semb E&C will be acquired by December 2007, a company release said. "The acquisition will help our group access new geographies and enhance our competitive positioning in existing markets. It will enhance our capabilities to tap into complementary growth sectors such as infrastructure and petrochemicals," Atul Punj, chairman and managing director, Punj Lloyd, said. The acquisition will expand the company's operations to Europe and China, besides Iran and other Southeast Asian markets.

In addition, the deal will also enable the company to enter several new areas, including airport construction, jetties, tunnelling and sewerage. Semb E&C will add petrochemical Punj Lloyd's portfolio. "In the petrochemical sector, Punj Lloyd can leverage Simon Carves' expertise in engineering, procurement and construction of PVC, styrene and refinery processes domain," the release said. PricewaterhouseCoopers Singapore acted as advisors to the transaction.

At present, Punj Lloyd provides engineering construction services in the oil and gas sector for pipelines, tanks and terminals, process facilities, and in the infrastructure sector for construction of highways and expressways, power plants and high specification buildings besides value added engineering and plant and facility maintenance. SembCorp Industries has operations throughout Southeast Asia, China, India, UK, West Asia and Russia. It is Southeast Asia's largest engineering and construction company outside Japan, China and Korea with experience spanning across more than 35 countries. Semb E&C has more than 1,640 employees worldwide, including 650 design professionals.