Redington (India) Ltd plans to acquire 25.97 per cent stake of its Cayman Island-based overseas business holding arm Redington International Holding Ltd, from Gulf-based private equity fund Investcorp or IVC, for an undisclosed sum, the company has disclosed in a statement to the Bombay Stock Exchange today.
Currently, Redington owns around 69 per cent stake in this arm through a wholly owned Mauritius-based entity. With this stake buy, Redington’s shareholding in the overseas arm will go up to 95.56 per cent. The balance is held by employees of the Redington group.
The transaction is to be completed within three months' time, the statement added.
Although it cannot be immediately ascertained exactly when Investcorp invested in this firm, three years ago, Investcorp invested $98 million to pick up 36 per cent stake in Redington’s Middle East and Africa (MEA) business.
Incorporated in 1961 and located in Chennai, Redington India is in the business of supply chain management for IT and non-IT products. The company offers its products through a network of distributors in India, the Middle East and Africa.
Shares of Redington India Ltd closed at Rs 75.80 a piece, up 0.33 per cent from the previous close on the BSE on Wednesday.
Redington India had raised Rs 67 crore funding from Ashish Dhawan-led ChrysCapital in 2006 before launching its IPO in 2007. ChrysCapital had exited its investment with a profit in 2009.
In July 2011, Standard Chartered Private Equity and ECL Finance (an NBFC arm of Edelweiss) together picked up 12 per cent stake in Redington for around Rs 438 crore. Standard Chartered PE currently holds around 12 per cent in the firm.
Investcorp is an investment holding company and makes investments in alternative assets through its subsidiaries, focusing on private equity, real estate and technology investments. It also manages hedge funds. Investcorp was founded in 1982 and is based in Manama, Bahrain with offices in New York and London.