The Hindu Business Line : Artson Engg: Stake sale nearing?

Artson Engineering, a turnkey and consultancy services company, is ruling firm at Rs 40 (BSE average daily volume around 61,000 shares for the past fortnight) as market talk suggested that the proposed stake buyout by Tata Projects, an unlisted arm of Tata Power, was nearing completion. Both the companies, however, were not forthcoming on the developments. Earlier, after a Business Line report on the proposed takeover, the company had confirmed to the BS E that it indeed finalised arrangements with Tata Projects for a majority stake, subject to BIFR approval. BIFR sources on Wednesday acknowledged that the board has received Artson’s draft rehabilitation scheme, with okay from the lenders (banks and institutions) and an investment commitment from Tata Projects. The next step before the final approval would be a public notice from BIFR seeking response/objection to the rehab plan within a prescribed timeframe. Sources said publication of such a notice was in the offing. Tata Project has committed to pick up around 75 per cent stake in the company. The consideration for the stake, according to the proposal, is to be utilised for one-time settlement of debts. Bank of India, the BIFR-nominated operating agency, in consultation with other lenders, has allowed major concession on interest. Artson, at present, has an order book position of about Rs 75 crore and the current operating financials are positive. It is executing, among others, contracts for Essar, Reliance Jamnagar refinery, and two overseas orders. It has also bid for some West Asian and local tenders worth Rs 300 crore with Tata Projects. Artson’s share in such joint bids is around 20 to 25 per cent. The proposal before the BIFR did not envisage a complete takeover of the company, including the promoters holding (13 per cent). SEBI allows exemption from open offer to an investor in a BIFR-referred company, if sought.

Jayanta Mallick

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