HCC Divests Steiner AG Stake, Focuses on India

New Delhi, Dec 20 (PTI) Hindustan Construction Company on Friday said it has divested its stake in Steiner AG to Uniresolv, an affiliate of Geneva-based m3 Immobilier Holding SA (m3) to focus on core operations in India.

Hindustan Construction Company (HCC), in a statement, said this has allowed for SAG subsidiary Steiner Development AG (SDAG) to start afresh as a direct subsidiary of m3 Immobilier, with aspirations to launch a Swiss IPO, while also helping HCC realise earnout liquidity of up to Rs 205 crore from SDAG's future success.

"In line with HCC's strategy to focus on its core EPC operations and pursuant to a Court-approved Scheme of Arrangement, HCC's stake in Steiner AG (SAG) (held via its wholly-owned subsidiaries, HCC Mauritius Investment Limited (HMIL) and HCC Mauritius Enterprises Limited (HMEL) has been sold to Uniresolv SA, an affiliate of m3 Immobilier Holding SA (m3), a prominent player in Geneva's real estate and finance sectors," it said.

According to the statement, at closing, HCC will also retain ownership of two SAG subsidiaries -- Steiner Eagle AG (SEAG) and Steiner India Ltd (SIL), which hold Rs 1,174 crore of contractual receivables and claims and Rs 43 crore of Indian land assets, the embedded asset value of which the entities expect to realise in 5 years.

"m3 will work closely with HCC to realise the assets in SEAG, of which HCC will share up to Rs 205 crore with m3," HCC added.

Its Vice Chairman Arjun Dhawan said HCC is proud of its 15-year association with Steiner, and its legacy of landmark projects across Switzerland.

"This transaction with m3 reflects a mutual desire to grow our respective core businesses in India and Switzerland, and to maximise long-term shareholder value," he added.

Chairman of m3 Groupe Abdallah Chatila said, "A combination of m3 Immobilier and Steiner Development is a major milestone in the history of the m3 Groupe as we strengthen our presence across the entire Swiss market".

According to the statement, HCC and m3 Groups will work together in achieving each company's future goals, while positioning the combined m3 Immobilier and Steiner Development as the leading independent real estate developer in Switzerland's eastern and western markets.

HCC's advisors to the transaction were Walderwyss AG and Cyril Amarchand Mangaldas.

It serves the infrastructure sectors of transportation, power and water.