Mumbai: Cabling solutions provider Paramount Communications has acquired UK-based AEI Cables in an all-cash deal, to strengthen its product range for core segments and facilitate expansion in international markets.
“One of the key reasons for the acquisition is to access the product development and technical know-how of AEI Cables in the defence sector. Paramount would like to take this product portfolio to India and other markets it operates,” Paramount Communications chairman and CEO Sanjay Aggarwal said.
The acquisition would make Paramount Communications the largest listed Indian company in the cable industry with an annual turnover of over Rs1,100 crore, the company said in a filing to BSE. However, no financial details of the transaction were provided.
The acquisition would strengthen Paramount Communications’ product range for infrastructure segments such as railways, mining and power and defence in India and the UK. Further it would broaden its base in international markets to as far as Middle East, Far East and Africa.
The acquisition has been funded through borrowings by Paramount Communications’ new wholly-owned UK subsidiary against the AEI Cables assets which it has acquired. Paramount is infusing Rs25 crore out of the proceeds of FCCBs.
AEI Cables is a provider of cables solutions to global markets and a wholly-owned subsidiary of international electronic sensors and components group TT Electronics Plc. It had a turnover of around Rs533 crore.
Paramount is a cable player in infrastructure sectors including power, railways, telecom and industrial projects.
London-based Elara Capital Plc, was the sole corporate finance adviser to the company for this transaction.