With Amin Deal on Slow Track, Jyoti Structures may be bought by KEC

MUMBAI: Infrastructure company KEC International is planning to buy a controlling stake in Jyoti Structures, which defaulted on Rs 2,000 crore of bank loans, as its deal with Dubai-based Amin Group is progressing at a slow pace. Lenders may now look at a second option if the deal with Amin falls through, two people familiar with the matter told ET.

While Jyoti Structures did not respond to ET's email, KEC International said that it was open to evaluating merger opportunities.“As a company focused on growth and delivering superior shareholder returns, we evaluate various merger & acquisition opportunities from time to time,“ said Vimal Kejriwal, managing director, KEC International in an email reply.“However, as a policy , we do not comment on market speculations.“

The Mumbai-based power transmission EPC (engineering, procurement and construction) service pro vider, Jyoti Structures has been negotiating to sell a controlling stake to Amin Group for six months.

“We may look at other options if the deal with Amin doesn't happen before December,“ said a lender who did not wish to be identified.

In its edition dated June 17, ET had reported that debenture holders did not receive their dues including principal and interest payments for bonds that were sold nearly three years ago for Rs 50 crore. They are now meeting in mid-November to discuss the future course of action, including a possible legal action against Jyoti Structures.

In the past five days, KEC shares have jumped close to 6% compared with 0.75% fall in Sensex, the broader index.