Mexico’s Prolec-GE International is likely to pay Rs 350-400 crore for about 74 per cent stake in Indo Tech Transformers, the latter’s executive director PS Jagdish said.
“The promoters’ stake and the 20 per cent stake to be acquired through the open offer would be worth Rs 350-400 crore,” he said.
The Mexican company has signed a share purchase agreement with the promoters of Indo Tech Transformers to acquire their entire stake, which amounts to 5.77 million shares or 54.35 per cent of the company’s equity base, according to the latter’s disclosure to the Bombay Stock Exchange.
Following the agreement, the acquirers will make an open offer to the shareholders of Indo Tech for another 20 per cent stake.
The Indo Tech Group flagship company that manufactures power and distribution transformers had on Wednesday denied reports that the promoters may sell stake to GE. Shares of Indo Tech have risen 58 per cent to end at Rs 276.75 a share over the past ten sessions on talks of a buy-out. Prolec GE, a joint venture between GE and Mexican industrial group Xignux, offers transformer products necessary for the generation, transmission and distribution of electricity.