Gammon India is considering to restructure its business verticals and might go for stake sale in its European offshore power subsidiary Gammon Holdings BV. The stake sale to strategic investors is likely to yield close to Rs 700-1000 crore, thereby clearing the debt burden to great extent.
In June 2008 the company acquired three Italian companies, for which it had raised about Euro 100 million at 2.25-2.5% over the prevailing Libor rate. This has added cost of servicing the debt on the company's books since then. The company currently incurs about Rs 700 crore annually to service this debt.
In June 2008 the company acquired three Italian companies, for which it had raised about Euro 100 million at 2.25-2.5% over the prevailing Libor rate. This has added cost of servicing the debt on the company's books since then. The company currently incurs about Rs 700 crore annually to service this debt.
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