Telecom and IT products distributor Redington (India) Ltd has raised its stake in Turkish company Linkplus Bilgisayar Sistemleri Sanayi ve Ticaret AS to 80% from 70% for $1.15 million (about Rs 7.7 crore).
Redington will acquire the remaining 20% stake on an equitable basis during 2016 and 2017 at a price-to-earnings multiple of 5x, it said in a stock market disclosure.
Redington holds the stake in Linkplus through its subsidiary Redington Gulf FZE.
At the time of signing the agreement for a 70% stake in October last year, the company had said that it would purchase the remaining stake over a period of three years.
Established in 1995, Linkplus is a distributor of Oracle software in Turkey.
Redington was set up in 1961 and distributes products of more than 100 international brands. The company provides supply chain solutions for all categories of IT products including personal computers as well as networking, software and enterprise solution products. It also distributes telecom products, digital lifestyle products, entertainment products and digital printing machines.
Redington went public in 2007 and is backed by Standard Chartered Private Equity, which picked up close to 12% in the company a few years ago. Redington also counts US-based global IT products distributor Synnex as a strategic shareholder.
In 2013, it had acquired a 47.78% stake in another Turkish firm ADEO Bilisim Danismanlik Hizmetleri San. ve Tic. A.S. for $1.09 million through its Turkey-based step-down subsidiary ARENA Bilgisayar Sanayi Ve Ticaret Anonim Sirketi.
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