Aiming to expand its presence in the non-auto sector, US$4.4 billion Murugappa Group company Tube Investments announced plans to acquire 44.1 per cent stake in industrial power transmission products manufacturer Shanthi Gears to enter the value added services market.
“Apart from bicycles we have been increasing our presence in the non-auto sector, like industries, gear boxes, industrial power transmissions. There will be synergy between the two companies (post this acquisition),” Tube Investments of India Managing Director L Ramkumar said.
Tube Investments said it has signed a “share purchase agreement” to acquire 44.1 per cent stake in Coimbatore-based Shanthi Gears currently valued at Rs 292 crore.
“TII will be making an open offer to the extent of 26 per cent. The total cost of the acquisition, including the public offer, is expected to be Rs 464 crore assuming full response to the proposed open offer pursuant to Sebi regulation,” Tube Investments of India said.
Published 14 July 2012, 15:20 IST