Hindustan Construction Company Limited — Important, 20-12-2024: General Updates

The Empowered Committee of the Board of Hindustan Construction Company (HCC) has completed a significant divestment, selling its entire stake in Steiner AG (SAG) and its subsidiaries to Uniresolv SA, an affiliate of m3 Immobilier Holding SA. This move aligns with HCC's strategy to focus on its domestic EPC operations and is part of a Court-approved Scheme of Arrangement. The transaction involves a swap of shares in SAG and a deferred payment of Rs 43 cr over nine months. Post-transaction, HCC will retain Steiner Eagle AG and Steiner India Ltd, which collectively possess Rs 1,174 cr in receivables and Rs 43 cr in land assets.

Through this arrangement, HCC is positioned to realize up to Rs 205 cr in future earnings from Stevenson Development AG's success. This divestment is expected to create opportunities for greater operational focus in India, presenting a positive outlook for HCC's core business.