Infrastructure firm SREI Infrastructure Finance is merging its privately held subsidiary Quippo with itself.
BDO Haribhakti Consulting, KPMG India and ICICI Securities are advising SREI.
Under the terms of the deal, Quippo shareholders will get three…
Infrastructure firm SREI Infrastructure Finance is merging its privately held subsidiary Quippo with itself.
BDO Haribhakti Consulting, KPMG India and ICICI Securities are advising SREI.
Under the terms of the deal, Quippo shareholders will get three shares of BSE-listed SREI for every two shares owned in Quippo.
SREI currently owns 16.8% of Quippo while the Kanoria family (which controls SREI) holds 57%. The remainder is held by private equity firms, including IDFC Private Equity and GIC. The Kanoria family holding will go up to 46% in the merged entity, up from the 30% in SREI.
The merged entity will see all infrastructure assets of the group bunched under the SREI-Quippo banner.
A number of firms operate under the Quippo banner; Quippo Construction, Quippo Oil & Gas, Quippo Energy, Asset Valuation & Disposal and of course tower firm Quippo Telecom Infrastructure.
Quippo Telecom Infrastructure acquired a 49% in Wireless Tata Telecom Infrastructure last year and the JV will continue to exist and become a subsidiary of SREI post merger.
The primary rationale behind the merger is that SREI will be able to borrow more capital as a merged entity.
The deal is expected to close in Q22010.