The Essar froup has acquired Avayas entire 59.13 per cent stake in AGC Networks for Rs 206.19 crore,or Rs 245 a share,subject to customary regulatory requirements and completion of the open offer. The acquisition would be done through Essar Services Holdings Limited (ESHL). Essar Capital Finance Private Limited (ECF) along with ESHL would come out with the mandatory open offer for an additional 20 per cent stake at a price determined as per the formula specified in the SEBI takeover regulation. ECF will make a mandatory public announcement on May 31,2010. Assuming all shares are tendered in the open offer,the total size of the open offer will be around Rs 78 crore. AGC Networks,earlier known as Avaya GlobalConnect,is a converged communication solution provider focused on India and Australia. The company employs approx 500 people. The current management is expected to continue and spearhead the business post-closing. Aparup Sengupta,Managing Director,and Global CEO,Aegis Ltd.,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 spends. The AGC Networks relationship remains key to Avayas success in India and Australia both through the period of this transaction and beyond, said Jangoo Dalal,Managing Director,Avaya India. In India we work together to serve some of the countrys leading organizations spanning multiple business sectors,and we look forward to continuing to work with AGC Networks as a trusted and well established business partner.
