Apollo Group executed binding agreement with Ammann Group

Apollo Group has executed binding agreements in which the Ammann Group of Switzerland has intended to hold a controlling stake of 70 per cent in the consolidated road construction equipment business of the Apollo Group, which is valued at approximately Rs. 400 crore. The Ammann Group has decided to invest in the core business, comprising asphalt plants, pavers, curb pavers, bitumen sprayers, and compaction equipment, to name a few.
Subject to the requisite approval of shareholders of GAIL and other approvals as may be required, GAIL and its wholly owned subsidiary, Apollo Earthmovers Limited will transfer their respective identified business, being the entire product portfolio of asphalt plants and the paver business to Apollo Construction Equipment Limited (ACEL) on slump sale basis for an aggregate consideration of approximately Rs. 280 crore, which will be discharged by payment on closing as per the definitive agreements between the joint ventures parties.
The transfer of business and formation of joint venture has been unanimously approved by the Board of Directors of GAIL, AEML and ACEL in their respective meetings held on 19th December 2012. It is expected that the joint venture closing would be achieved by mid April 2013.  “We are pleased to enter into this joint venture with Ammann Group. This is a highly compelling strategic partnership, bringing together two groups to realise substantial value for all stakeholders and enhance growth prospects,” said Anil Patel, the founder and lead promoter of Apollo Group.

10