Sujana Towers Overseas acquisition

Sujana Towers soared 10.58% to Rs 104.50 at 12:39 IST on BSE on acquiring 51% shareholding in Telesuprecon, a Mauritius based company engaged in undertaking telecom infrastructure contracts in east and central Africa..

The stock hit a high of Rs 110.90 and a low of Rs 94.55 so far during the day. The stock had a 52-week high of Rs 235 on 1 January 2008 and a 52-week low of Rs 84.05 on 24 March 2008.

The company has an equity capital of Rs 20.72 crore. Face value per share is Rs 5.

The current price of Rs 104.50 discounts its Q3 March 2008 annualised EPS of Rs 11.86, by a PE multiple of 8.81.

Telesuprecon is in advanced stages of negotiations for securing telecom infrastructure contracts of aggregate value about $40 million, which is to be executed within a period of next 12-21 months.

Telesuprecon is an engineering procurement construction (EPC) telecom company, operating for last 10 years in African continent, covering operations in countries of Malawi, Nigeria, Tanzania, Kenya Mozambique & Mauritius.

In February 2008, Sujana Towers’ board approved resolution for issue of foreign currency convertible bonds (FCCB), global depository receipts and American depository receipts for up to $75 million.

Sujana Towers reported a net profit of Rs 12.29 crore on net sales of Rs 151.87 crore in Q3 March 2008. Figures of the corresponding previous year period were not available.

The company manufactures galvanized steel towers. It caters to two segments, which include towers for telecom industry and towers for power transmission.