Schneider Electric to buy majority stake in APW President
Schneider Electric today said it has signed an agreement for acquiring 55 per cent of promoter's stake in APW President Systems for Rs 62.2 crore.
APW designs and manufactures standard and customised racks and enclosure systems in India, serving IT and telecom firms.
Schneider Electric plans to acquire a minimum of 55 per cent of the promoter shares of APW, followed by up to 20 per cent of the share capital through a mandatory open offer, Schneider Electric said in a statement.
The maximum price payable by Schneider Electric for the shares to be acquired from the promoter shareholders is Rs 195 per share, which translates to Rs 622 million for 55 per cent, it added.
Pursuant to the open offer, the cost to acquire up to 20 per cent of the share capital will be in accordance with applicable Indian law.
"With this acquisition, Schneider Electric is well positioned to capture opportunities in the fast growing Indian IT infrastructure market as well as in international markets, particularly in Asia Pacific and Middle East," Schneider Electric said in a statement.
The BSE-listed APW, which has manufacturing facilities at Pune and Bangalore, has about 380 employees and reported sales of Rs 108 crore for the 12 months ending September 30, 2010.
APW share closed today at Rs 157.50 on the Bombay Stock Exchange, up five per cent from the previous close.