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Our Bureau

Bangalore, May 15 Solectron EMS India Ltd said Mr Apparao V. Mallavarapu, co-promoter, has proposed to buy 34,04,000 shares, which is about 46 per cent of the total number of shares, from C-MAC Holdings Ltd for Rs 10 a share.

The mode of proposed acquisition is by way of Promoter Inter-se Transfer and the date of proposed acquisition is not later than August 15, the company said in a notice to the stock exchange.

The last traded price of Solectron EMS India’s share was Rs 151 on Wednesday at the Bombay Stock Exchange, after closing at Rs 153.75 on Tuesday.

A company spokesman told Business Line that the transaction is a transfer of shares between promoters. It would amount to changes in management controls, he added. After Mr Mallavarapu acquires the shares, the management control would be with the Indian promoter rather than with the foreign promoter, the spokesman said.

He said Flextronics, through C-MAC, owns 56.678 per cent share in the company. After the deal is completed, Flextronics would continue to own the remaining shares.

Solectron EMS India Ltd was initially a part of a company called C-MAC Centum Electronics Ltd, which changed its name to Solectron Centum Electronics Ltd after C-MAC was taken over by Solectron, he said.

Solectron Centum Electronics Ltd was demerged effective October 1, 2006 into two companies on the basis of the components and EMS business divisions.

The company formed out of the electronic manufacturing service division was called Solectron EMS India Ltd. The other company was called Centum Electronics Ltd, which has Mr Mallavarapu as its Managing Director.

Flextronics bought Solectron Corp in 2007, thus acquiring stake in Solectron EMS India Ltd.

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