GMM Pfaudler surges over 8%

GMM Pfaudler has attracted a lot of attention today, opening itself over 8% higher at Rs.6360; it has given up those gains now but trades strongly in the green, up some 4.5%. Its 10% UC for the day is at Rs.6466.40.

The Indian unit of US-based Pfaudler Inc. said yesterday that it is taking a 34.4% controlling interest in the group’s global business and its Swiss unit, Mavag AG will be buying 19.6% stake for a total of around Rs.206 crore.

GMM managing director Tarak Patel and director Ashok Patel, will buy another 26% of the global business, paying around $13.2 million.

Pfaudler Inc. currently owns a 50.44% stake in the Mumbai-listed company while the Patel family and other local promoters hold 24.56%.

Post this acquisition, Pfaudler International will hold 20%.

GMM Pfaudler said the deal involves the acquisition of the group’s businesses in Germany, Italy, the UK, the Netherlands, Singapore, Brazil, Mexico, China and a newly formed entity in the US.