The Hindu Business Line : Wadias take over Electromags

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Chennai Feb. 12 The Wadias have taken over Chennai-based Electromags Automotive Products Pvt Ltd (EAPL), which makes solenoid valves and switches, in a Rs 55-crore deal.

Bombay Burmah Trading Corporation Ltd, belonging to the Nusli Wadia Group and claimed to be the second oldest publicly quoted company on the Indian stock exchanges, has taken management control over the company, Mr V. Ravindran, Director, EAPL, told Business Line.

Sources said the Wadia Group company had bought-out the three promoters of EAPL almost entirely in a cash deal reportedly worth around Rs 55 crore.

Chennai-based investment banker Veda Corporate Advisors Private Ltd, it is learnt, acted as an exclusive adviser to the promoters of EAPL in this transaction. The promoters still hold some shares, albeit of insignificant size. The Electromags group has three outfits. The Wadias will now control not only EAPL but also its two subsidiaries.

`Good option'

The deal is considered a win-win for both the original promoters and the Wadias. Mr Ravindran said the promoters saw in this a `good option' and a better way to grow the company, as there were genuine constraints for individual entrepreneurs to take the organisation to a higher level and a greater professionalism in the highly competitive environment. The Wadias, on the other hand, were looking for a bigger foray into automotive products, he added.

According to Mr Ravindran, the turnover of Electromags group is over Rs 50 crore and it employs around 325 people. The group supplies to leading domestic automotive players. Mr Ravindran said a quarter of its revenue came from exports.

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