The Hindu Business Line : Actis to invest $44.4 mn in Phoenix Lamps

Private equity investor Actis announced on Tuesday that it will be investing $44.4 million for picking up equity in two companies, including buying out the promoter stake in Noida-based Phoenix Lamps, which owns the Halonix brand. The company will invest $28.9 million in Phoenix Lamps to buy out the promoter stake of 36.7 per cent. Actis is acquiring the complete stake of the promoters, Mr B.K. Gupta, Mr H.R. Gupta and family at a price of Rs 152 per share, a press release stated.

The acquisition would take Actis' stake in the company to 45 per cent. Actis will shortly be announcing an open offer to acquire a further 20 per cent. This will be the private equity firm's third management buyout in India after Nitrex and Punjab Tractors.

Taking over

Phoenix manufactures and markets lighting products and systems under Halonix brand, including for the high-growth energy efficient segment. ``Phoenix Lamps is a first-rate company serving the major OEMs as well as the Indian consumer. We intend to ensure that the Halonix brand develops its full potential in energy-efficient lighting systems while also expanding the global reach of Phoenix's automobile lighting products,'' the Actis South Asia Managing Partner, Mr Donald Peck, said.

Another investment

The company said it will also invest $ 15.5 million in growth capital to fund the expansion of Add Life Medical Institute Ltd, the Gujarat hospital chain, which operates under the Sterling brand.

"Actis has identified Sterling for its thrust into the healthcare sector because of its well-managed current business and its potential for inorganic growth in the underserved but attractive Gujarat market. We expect this business to achieve strong growth based on its successful acquisition and integration strategy," Mr Peck said.

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