Essar Group To Get Hold Of 59.13% Stake In AGC

Essar GroupDiversified business conglomerate Essar Group announced that it will get hold of Avaya's 59.13% equity stake in converged communication solution provider AGC Networks for an aggregate amount of Rs 206.19 crore.

In a declaration, the company said, "The Essar Group will acquire Avaya's entire 59.13 percent stake in BSE/NSE-listed AGC Networks for USD equivalent of Rs 206.19 crore, or Rs 245 a share, subject to customary Indian regulatory requirements and completion of the open offer."

This acquirement will assist catapult Aegis, in which Essar Services Holdings Ltd (ESHL) invests, into top-tier of solution integrators (SI) space.

Aparup Sengupta, Aegis' managing director and global chief executive officer, said, "Essar in a short span has become a key player in the SI space and would benefit immensely from the depth and width of expertise AGC Networks has. We have a definitive plan to grow this business as we aim for bigger chunks of customer spend."

Essar Capital Finance (ECF) together with ESHL would emerge with the obligatory open offer for an added 20% equity stake at a price decided according to the formula specified in the SEBI's takeover regulations.

ECF will make a mandatory public announcement today and stated that the total size of the open offer will be around Rs 78 crore.

AGC Networks, earlier known as Avaya GlobalConnect Ltd, focuses on the India and Australia and appoint around 500 people.

"The current management is expected to continue and spearhead the business post-closing," the statement said.

In a release, Avaya said that the sale of its AGC Networks equity stake will allow it drive added focus on two of its strategic imperatives.

Avaya is centered on delivering fit-for-purpose communications systems to the enterprise market. AGC Networks will remain its key channel-partner serving customers in India and in Australia, the statement added.

Edelweiss Capital is the only advisor to the transaction and is the manager to the open offer. (With Inputs from Agencies)