Action Construction Cyprus arm acquires SC FORMA SA-Romania

Action Construction Equipment Ltd has announced that on February 02, 2007, the Company's Cyprus arm (WOS) M/s. FRESTED Ltd has acquired 73.9% stake in a Romanian Company viz SC FORMA SA-Romania, for a total cost of 2.15 M USD. The Company has added its 7th location on it's map.

SC FORMA SA-Romania is 58 years old Company. Shares of the Company are listed on RASDAQ stock exchange of Bucharest (Romania).

Earlier, the Company was engaged in the activity of manufacturing of small Tractors from 4 HP to 15 HP, along with various agriculture implements. Due to general downtrend in the Eastern European economy and breakdown in the industrial structures in Romania, Tractor manufacturing was discontinued. Now, the Company is manufacturing Tractor Parts, automotive parts & Agriculture Implements with its own forging & Machine shop.

This Company has a total manpower of 120 Employees and fleet of Machines and located in a area of 35000 Sq Mtr.

The Company intends to manufacture it's own products like Cranes, Loaders, Forklifts etc, in this new Company and enter into European Market.

The Company also intends to acquire further stake in this Company, by way of open offer, through its WOS, M/s. FRESTED LTD, Cyprus.

Source : Equity Bulls

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