Air-conditioning major Blue Star Ltd has decided to acquire the remaining 51% stake with 5% economic interest in its subsidiary Blue Star Qatar W.L.L. (BSQ) from Al Malki Trading & Contracting Co. for a consideration not exceeding ₹50 lakh.
The acquisition will be carried out at the face value of Qatari Riyal 1,02,000 and is subject to fair market valuation in accordance with applicable foreign exchange laws and Reserve Bank of India guidelines.
Regulatory changes enable full ownership
BSQ was established to undertake design, engineering, installation, maintenance and contracting activities related to mechanical, electrical and plumbing systems in Qatar.
The joint venture, incorporated in February 2007, had a share capital of QAR 200,000, with Blue Star holding 49% stake and the remaining 51% held by Al Malki Trading & Contracting Co.
Blue Star already held economic control
Despite holding 49% equity, Blue Star had 95% economic interest and management control in BSQ and was entitled to receive 95% dividend irrespective of its shareholding structure.
At the time of investment in 2007, Qatar regulations required a local national to hold at least 51% stake in such businesses, resulting in the current ownership arrangement.
BSQ posts QAR 25 million turnover
Following changes in Qatar’s regulatory framework permitting 100% foreign ownership in the relevant business segment, Blue Star has now proposed to acquire the entire 51% shareholding, including the remaining 5% economic interest, from ATC.
The proposed acquisition is not a related party transaction. Post completion of the deal, BSQ will become a wholly owned subsidiary of Blue Star.
BSQ reported a turnover of QAR 25 million during FY26.