Cyient to acquire remaining 26% stake in EDSM subsidiary

Cyient Tuesday said it has signed a definitive agreement to acquire remaining 26 per cent stake in one of its subsidiaries, Cyient DLM, to take the overall holding to 100 per cent.

Mysuru-headquartered Cyient DLM, formerly Rangsons Electronics, is an electronics system design and manufacturing (EDSM) services company.

"Cyient Limited acquired 74 per cent equity stake in Rangsons Electonics Pvt Ltd in February 2015...By acquiring the balance 26 per cent stake, Cyient Limited and its nominees will get 100 per cent ownership in Cyient DLM," Cyient said in a regulatory filing.

The deal involves a equity payout of Rs 42.50 crore for 26 per cent stake acquisition "in line with the terms of the Share Purchase Agreement entered into between Cyient Ltd and the sellers in January 2015", it added.

The deal is expected to close in 30 days and is subject to customary closing conditions.