By IANS
Ahmedabad : Vadodara-based Apar Industries Ltd will acquire 42 percent stake in publicly listed Uniflex Cables Ltd that has manufacturing plants in Gujarat.
The deal, which would make Apar Industries the single largest shareholder in Uniflex, was approved at a board meeting of the company, Apar Industries informed the Bombay Stock Exchange Monday.
This apart, the company will subscribe to 4 million warrants, which will increase its stake to 49 percent, making the deal worth above Rs.700 million. Uniflex Cables has been valued at an enterprise value of over Rs.1.6 billion.
After acquiring Uniflex shares, Apar Industries, under the market regulator’s rules for acquisition of shares and takeovers, will make a public offer for acquiring another 20 percent stake in the cable company.
“With this acquisition, we are in position to take care of all the end-to-end requirements of our customers in the booming power transmission and distribution sector carrying power from power plants all the way through to end users,” said Kushal Desai, managing director of Apar Industries.
“This acquisition diversifies our product range from bare conductors and increases the product offering that we have to some of our largest customers both in India and abroad.”
Ajay Baid, managing director of Uniflex, said: “The partnership with Apar Industries will be beneficial for the company as it will help Uniflex can gain access to financial resources at a lower cost besides a widening of the customer base for exports and strengthening of operating synergies in order to grow the cable business aggressively.”