M A Chidambaram (MAC) Group promoted Sicagen India Ltd has entered into a Share Purchase Agreement (SPA) for a 100 per cent acquisition of Wilson Cables Private Limited (WCPL), Singapore. Total consideration in the deal estimated to be around Rs 50 crore.
It may be noted, Sicagen is originally promoted by MAC Group, which had set up up one of the oldest industrial houses Southern Petrochemical Industries Corporation Ltd (SPIC).
According to company’s announcement to Bombay Stock Exchange (BSE) today the company has entered into a SPA on March 31, 2011 for completion of 100 per cent acquisition of WCPL, Singapore. In terms of the SPA the Sellers and the company shall, subject to the fulfillment of certain conditions precedent as stated therein, complete the transaction for transfer of entire shares of WCPL.
According to company sources, the acquisition will be by way of subscription, purchase of otherwise sharesô securities of Wilson Cables, for a total consideration of Rs 50 crore.
“This acquisition will propel Sicagen to become of the strongest performers in marketing cables in domestic as well as the international market and also provide significant benefits in accelerating the pace of innovation in porfolio and leveraging branding and marketing and distribution capabilities,” according to company sources.
In addition, the new acquisition will further support to strengthen the existing marketing business of the company and increase the revenue and profits in future.
Sicagen’s creation was part of strategy to focus on the key area of interest which is trading in building materials such as steel pipes and fittings, TMT rebards, PVC pipes, electrical cables, cements and dealing in vehicles.
The company was originally promoted by South India Corporation (Agencies) Ltd, which was promoted M A
Chidambaram Group. The company was promoted along with SICAL Logistics Ltd, which recently diluted its majority stake to Tanglin Retail Reality Developments Pvt Ltd.
In 2008, Sical Logistics Ltd has de-merged its non logistics businesses into a wholly owned subsidiary, Sicagen India Limited, with effect from October 1, 2006.
Sicagen’s core business include trading of building materials such as GI pipes, precision tubes, seamless tubes, rectangular/square hollow sections, construction steel including TMT steel rebars, PVC pipes, electrical cables, steel fittings and cement. In 2009-10 company’s sales and service revenues rose by 22 per cent to Rs 514.10 crore from Rs 421.48 crore a year ago.
Wilson Cables Private Limited manufactures and supplies cable products. The company offers flexible, coaxial, power and control, fire resistant power and control, fire resistant, instrumentation, industrial, shipboard instrumentation and communication, and instrumentation armored and unarmored cables, as well as oil and gas, and shipboard power cables; and armored/unarmored PVC and XLPE insulated cables.
It serves the construction, shipbuilding, and oil and gas industries in Singapore, China, Hong Kong, Brunei, Malaysia, Indonesia, Thailand, Myanmar, Vietnam, Cambodia, Sri Lanka, Pakistan, India, New Guinea, Australia, Fiji, the Philippines, Iran, Oman, Maldives and Mauritius.
