The Hindu Business Line : Bain Capital acquires parent co of FCI OEN Connectors

BAIN Capital, a global private investment firm, is acquiring electronic connector maker FCI, which has a 68-per cent stake in the Kochi-based FCI OEN Connectors Ltd through its subsidiary, FCI France.

The FCI OEN stock closed at Rs 415.10 on the BSE on Monday.

On September 20, Bain Capital announced signing a `definitive agreement' to acquire FCI, which is a subsidiary of AREVA.

AREVA decided to sell FCI to stay focussed on its core business of energy.

FCI OEN sources said the acquisition of FCI would not have any impact on the company. However, it is not immediately known whether this acquisition would trigger an open offer in India.

In the past, when some overseas companies which had stock exchange-listed Indian subsidiaries were taken over, the acquirers were required to come out with open offers as per the rules of Securities and Exchange Board of India (SEBI).

However, SEBI had also given exemptions in some cases. A SEBI official said if any company wants to get an exemption from making an open offer, it can make its case before the Take Over Panel at SEBI.

FCI OEN sources said the possibilities of the open offer have been looked into at the company's board level and the matter has been intimated to FCI.

Besides FCI's 68 per cent stake, Indian public holds 24.64 per cent shares in FCI OEN. Private corporate bodies, non-resident Indians, foreign institutional investors and others hold the balance.

In addition to being the largest shareholder, FCI accounts for 90 per cent of FCI OEN's exports.

Total sales of FCI OEN in 2004 stood at Rs 113 crore.

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