Toshiba to Buy 26% Stake in UEM India
By ENS Economic Bureau | Published: 08th January 2014 06:00 AM |
Japanese major Toshiba Corp has entered into an agreement to acquire a 26 per cent stake in Indian waste water management company UEM India for an undisclosed sum.
The company will acquire the stake from existing shareholders, including private equity investor India Value Fund Advisors (IVFA), the company said.
It may be noted that IVFA had acquired a majority stake in UEM in July 2010.
“This is a strategic growth area for Toshiba and we will bring our expertise and global access to the company, and also learn from UEM’s vast experience in delivering complex, turnkey projects around the world,” said Naohiro Noro, Vice President, Water & Environmental Systems Division, Toshiba Corporation here on Tuesday.
Toshiba’s entire investment will be infused into the business to drive future growth, the company said in a statement. Following the acquisition, IVFA will continue to own a majority stake in the venture.
The proposed collaboration is expected to enable UEM to increase its business potential and geographic footprint, as it gains access to new geographies and new business segments, while retaining its India cost advantage.