Ahmedabad, July 18: The Rs 1100-crore Torrent group has decided to acquire majority stake in Ahmedabad Electricity Company (AEC). This move follows the Gujarat government's decision to divest its 29 per cent stake in AEC.

Torrent which holds 21.36 per cent stake in AEC, will buy 10 per cent of the equity paying at an agreed price of Rs 117 per share. Last week, the scrip was quoted at Rs 55 and on Thursday it touched Rs 88.

According to a Torrent official, the group will shortly issue a public offer for 2 per cent public offer as per SEBI's guidelines, while acquiring the remaining 19 per cent share of the state government in due course.Even if Torrent has to incur some losses while acquiring the state government's shares at the agreed price, it is part of the corporate strategy to produce 2000 MW by 2000, the official added.

It took almost two years of negotiations for the state government to agree to a price quoted by a corporate house, with Bombay Dyeing also pitching for the company by offering an higher price. However, Bombay Dyeing's bid was rejected by SEBI.

Torrent has mapped out a long term strategic plan to emerge as a major player in healthcare, energy and finance, the official said.

While AEC is at present producing about 550 MW of power from coal, gas and naphtha, a 655 MW plant of the Torrent group is nearing completion as it proposed to double its capacity and at the same time start a 250 MW captive plant for Surat Electricity Company, which is at present only distributing power.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.