Kolkata-based McNally Bharat Engineering, promoted by the Williamson Magor group and GP Birla, has informed that company’s board at its meeting held on May 16, 2008 has approved the acquisition of 68.3 per cent stake in Sayaji Iron & Engineering Co.

The stake would be purchased from the existing founders of Sayaji for Rs 59 crore. Further, McNally signed the memorandum of understanding to acquire the shares at Rs 221.60 a share.

Sayaji Iron & Engineering is a Gujarat-based company having its plant at Vadodara. The company is engaged in making equipment used by steel, cement, power and coal units for crushing and grinding.

The shares of McNally Bharat closed today at Rs 175 on BSE, up 1% compared with previous close of Rs 173. The scrip touched an intraday high and low of Rs 182 and Rs 171 respectively.