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Action Construction unit acquires 74% stake in Romanian company

Action Construction Equipment Ltd., an Indian crane maker, said its Cyprus-based unit Frested Ltd. acquired 73.9% stake in a Romanian automobile parts maker, S.C. Forma SA. The Indian company's shares rose.

Frested paid $2.15 million for the stake in the Romanian company, Faridabad, India-based Action Construction said in a statement to Bombay Stock Exchange today. Action Construction will use the Romanian company's facility to manufacture cranes and other construction equipment to sell in the European market. It will also acquire more stake in Forma by making an open offer through its Cyprus-based unit, the statement said. Shares of Action Construction rose 7.35 rupees, or 2.8%, to 270.85 rupees at 12:28 p.m. local time on the Bombay Stock Exchange. The stock earlier rose by its 5% limit. (Bloomberg)