RMS completes acquisition of 90% stake in KH Foges through wholly owned subsidiary

Readymade Steel India Ltd. (RMS), a market leader in offering product and service solutions to the Building & Construction industry in the Infrastructure space, on Friday announced that it has successfully accomplished its acquisition of 90% stake in KH Foges Pte. Limited through its wholly owned subsidiary, Readymade Steel Singapore Pte. Limited.

KH Foges is a leading specialist contractor in foundation engineering works in Singapore established in the year 2004 with a Total Income of approx. S$80mn ( INR 350cr) and Net Profit of approx. S$4.6 mn ( INR 20cr) respectively for the year ended December 2011.

Announcing the completion of acquisition, Mr. Anil Agrawal, Managing Director of Readymade Steel India Ltd., said, "The acquisition of KH Foges Pte. Ltd. would result in diversifying the product and service portfolio of RMS enabling it to become a total integrated infrastructure solutions provider to the infrastructure sector.

The acquisition is value accretive to the shareholders of RMS and is expected to result in increased business strength and improved financial performance.

It is a matter of immense pleasure to announce this on the special occasion of first anniversary of listing of RMS. I take this opportunity to thank all the shareholders and company's banker - Union Bank of India for their continued support."

Arihant Capital Markets Limited acted as the advisor to the Company for this acquisition. The due diligence was conducted by KPMG, Singapore (financial and tax) and Stamford Law Corporation, Singapore (legal & secretarial) while Greenfield Advisory, assisted in the transaction in Singapore.