WHITE PAPER

Essar Group to buy stake in AGC

by VARINDIA 2010-06-14

Essar Group is said to acquire 59.13 percent stake in converged communication solution provider AGC Networks (previously Avaya GlobalConnect) by paying a sum of Rs.206.19 crore ($44.5 million).

'The Essar Group will acquire Avaya's entire 59.13 percent stake in BSE/NSE-listed AGC Networks for USD equivalent of Rs.206.19 crore, or Rs.245 a share, subject to customary Indian regulatory requirements and completion of the open offer,' it said in a statement.

The acquisition is being done through Essar Services Holdings (ESHL). Essar Capital Finance Private (ECF) along with ESHL would now come out with an open offer for an additional 20% stake in AGC Networks at a price determined under Sebi's takeover code. The acquisition will help catapult Aegis, in which Essar Services Holdings Ltd (ESHL) invests, into top-tier of solution integrators (SI) space. Along with the Indian operations of AGC Networks, Essar is also buying the Australian and New Zealand businesses of the company

Avaya, in a recent release said the sale of its AGC Networks stake will enable it drive additional focus on the development of the Avaya business in India and the growth and extension of its channel coverage model through Avaya's global channel programme, Avaya Connect.