SAE Tower to sell stake to KEC

SAE Tower to sell stake to KECThe 17,000 crore rupees worth of deal between RPG group and SAE Towers of US is finally over after being stranded for two years. The takeover marks the capture of the deal which is worth 17,000 crore rupees and will be done in the name of KEC.

KEC had signed a deal with SAE Holdings by buying stakes from a private equity firm, Acon Investment and at that time it had to pay $95 million.

The takeover deal is going to be cash-free, debt-free in nature and will give KEC access to the regions of US, Canada and other Latin American markets.

SAE at present has the turnover of $137 million besides an EBIDTA of $19 million and margin of 14 per cent. The margin for KEC is 9-10 per cent.

Talking about the same, Harsh Goenka, Chairman of RPG Enterprises said that the company sees huge opportunity in the deal as the valuations are very good and that it is in line with the strategy of the group to be in other businesses as well.

The takeover will close by the end of this month.