French electric equipment maker Legrand had made an offer to buy the switchgear business of Indo Asian Fusegear Ltd for a consideration of Rs 600 crore.

Legrand will acquire the switchgear business for Rs 495 crore. In addition, the French company will pay a one-time, non-compete fee of Rs 35 crore to Indo Asian.

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That apart, the buyer has also agreed to acquire all the switchgear brands owned by Indo Asian Marketing, an firm promoted by the Indo Asian promoters, for a consideration of Rs 35 crore, Indo Asian informed the Bombay Stock Exchange.
    
"The board of directors has approved Legrand's offer for the purpose of switchgear division of Indo Asian Fusegear. The company will continue to operate its other existing business in the areas of lighting, wires and cables," Indo Asian Fusegear Chairman & Managing Director V P Mahendru said.
    
The board of directors of Indo Asian Fusegear had yesterday approved sale of switchgear business of the company to Legrand France SA, which is subject to regulatory approvals, the joint statement made by both the companies said.
    
"The board will be recommending a special dividend to the shareholders out of the proceeds of the sale of the switchgear business," Mahendru added.
    
Ambit Corporate Finance is the exclusive investment banker to the deal and J Sagar & Associates is the legal advisors to Indo Asian, while Amarchand Mangaldas is the legal advisors to Legrand.
    
"We intend to accelerate the growth rate of both the companies, by continuing sustained growth investment like, launch of new products, addition of commercial manpower," Legrand India MD Yves Martinez said.
    
Indo Asian Fusegear is one of the leading manufacturers of switchgears, lighting products, wires, cables in the country.

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