HCC Sells Stake in Steiner AG to m3 Immobilier

23 Dec 2024 , 11:22 PM

Hindustan Construction Company (HCC) has sold its stake in Steiner AG (SAG) to Uniresolv, a company linked to Geneva-based m3 Immobilier Holding SA, as part of its strategy to focus on core operations in India.

The divestment enables Steiner Development AG (SDAG), a subsidiary of SAG, to operate independently under m3 Immobilier and plan for a Swiss IPO. HCC expects to gain up to ₹205 crore in future liquidity through SDAG’s performance.

This move aligns with HCC’s Court-approved Scheme of Arrangement and its goal of streamlining its engineering, procurement, and construction (EPC) operations. Following the sale, HCC will retain ownership of two subsidiaries: Steiner Eagle AG (SEAG) and Steiner India Ltd (SIL).

SEAG and SIL hold assets worth ₹1,174 crore in contractual receivables and claims, as well as ₹43 crore in Indian land assets, which HCC aims to monetize within five years.

m3 Immobilier will collaborate with HCC to realize the value of SEAG’s assets, with HCC receiving a share of up to ₹205 crore. HCC Vice Chairman Arjun Dhawan emphasized the company’s pride in its 15-year partnership with Steiner and its significant projects in Switzerland.

m3 Groupe Chairman Abdallah Chatila called the acquisition a milestone for m3 Immobilier, positioning the company as a leading real estate developer across Switzerland. The collaboration between HCC and m3 will focus on advancing their respective core businesses and creating value for shareholders in both India and Switzerland.

Legal advisors for the transaction included Walderwyss AG and Cyril Amarchand Mangaldas.HCC remains committed to its key sectors, including transportation, power, and water infrastructure.