Info-tech

Redington to acquire 25.97% stake in overseas arm

Our Bureau Chennai | Updated on December 19, 2011

Redington (India) Ltd will acquire 25.97 per cent stake of its overseas business holding arm Redington International Holding Ltd from private equity fund Investcorp for $113 million.

Currently, Redington India owns 69.94 per cent stake in the Cayman Island-based arm through a 100 per cent wholly owned Redington International Mauritius Ltd.

Through the transaction Redington India's ownership in Redington International will increase to 95.56 per cent, and the balance will be held by the company's employees, said a company communication to the Bombay Stock Exchange.

Redington International handles the Gulf region, which contributed nearly 45 per cent of Redington's revenue in 2010-11.

The Chennai-based Redington is in the business of supply chain management for information technology and non-IT products. It offers its products through a network of distributors in India, the Middle East and Africa.

On the Bombay Stock Exchange, the shares of Redington India closed at Rs 77.95, an increase of Rs 4.45 or 6.05 per cent over Friday's closing price.

>raja@thehindu.co.in

Published on December 19, 2011

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