Suprajit Engineering to acquire Phoenix Automotive Lamp
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- May 7, 2015
Mumbai: Auto cable manufacturer Suprajit Engineering Ltd on Wednesday said it will buy 51-61.88% in Phoenix Lamps Ltd from Argon India Ltd Mauritius and Argon South Asia Ltd, Mauritius, at Rs.89 a share that has a face value of Rs.10.
Phoenix Lamps makes automotive lighting for Indian and foreign auto firms, and has a strong presence in the aftermarket segment.
The Bengaluru-based company has also announced an open offer to Phoenix shareholders at Rs.100 per share. This is the fourth acquisition by Suprajit, India’s largest automotive cable manufacturer, in the recent past.
It earlier acquired Shah Concabs Pvt. Ltd, CTP Gills Cables Ltd, UK, and the automotive cable division of Pricol.
“Phoenix finds a strategic fit in Suprajit’s plan to diversify beyond cables, while retaining our core competence in cables and our focus on automotive component industry,” said Ajith Kumar Rai, chairman and managing director at Suprajit Engineering, in a statement.
Grant Thornton India was the financial advisor for the deal and Ernst and Young was exclusive financial advisor for the Argon entities.
At 3.17pm, shares of Suprajit Engineering Ltd were up 0.25% to Rs.120.90, while Phoenix Lamps rose 3.74% to Rs.109.50. India’s benchmark BSE Sensex fell 2.6% to 26626.35 points.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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