Business Daily from THE HINDU group of publications
Tuesday, Oct 02, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Oct 02, 2007 ePaper |
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Corporate
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Overseas Investments Web Extras - Mergers & Acquisitions Ruia group buys controlling stake in Malaysia’s Industronics Our Bureau Kolkata, Oct. 1 The Ruia group has acquired 30 per cent controlling stake in Industronics Berhad of Malaysia for an undisclosed sum. The acquisition was carried out through Ruia group SPV, Bloom Billions Sdn Bhd, in June this year. A slew of Ruia group outfits including Raghav Industries, Suryamani Finance Co, Indo-Wagon Engineering Ltd, and Zipco Industrial Finance, and the group Chairman, Mr P.K. Ruia, hold stake in Bloom Billions. Industronics is listed in the technology sector of the Second Board of Bursa Malaysia Securities Berhad (formerly known as the Kuala Lumpur Stock Exchange) with close to 49 per cent public shareholding. The company manufactures Olympex branded display systems and signs used in airports, highways and other major public utilities. This apart, the company provides solutions in intelligent communications and sound systems, advertising and promotion, environmental monitoring and telemetry and fabrication and manufacturing of engineering products. TurnoverThe Malaysian company was passing through an unstable phase for the last few years and has registered a turnover of MYR80.04 million (Rs 93.43 crore) and post tax profit of MYR1.18 million (Rs 1.3 lakh) in 2006. The company has overseas outfits in a number of countries including Singapore, China, and Vietnam. “We are the single largest shareholder in Industronics,” Mr Ruia told Business Line. The group has acquired the stake through open market purchases.
According to stock market notifications issued by Industronics, Bloom billion has already placed 3 directors, including Mr Ruia, on the Board. Following Ruia Group’s advise, the company has also inducted Ernst and Young as auditor and called an EGM in October to expand the Board size from 9 to 15. Sources in Ruia group said that following the approval of shareholders, the company is planning a complete recast of the Board as well as the top management. Mr Deepak K. Ruia (brother of Mr P.K. Ruia), who is now an executive director on the board of Industronics, is likely to assume the office of Managing Director in the future. Describing the acquisition as “synergic” to the activities of the group’s infrastructure arm Jessop & Co, Mr Ruia said that “the huge modernisation programme undertaken by Indian Railways and airports authority is expected to generate substantial opportunities for Industronics in the Indian market in the very near future.” More Stories on : Overseas Investments | Hardware | Mergers & Acquisitions
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