Sicagen India Ltd, which has entered into a share purchase agreement (SPA) with Wilson Cables Private Limited (WCPL) of Singapore, is likely to pay around Rs 50 crore for the 100 per cent acquisition.
The company, a part of the MA Chidambaram group, announced that it has entered into an SPA on March 31.
According to company sources, the acquisition will be by way of subscription, purchase of otherwise shares / securities of Wilson Cables, for a total consideration of Rs 50 crore.
The new acquisition is expected to strengthen Sicagen's existing marketing business and to increase its revenue and profits.
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, the 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, and other industrial products.
