Financial Daily from THE HINDU group of publications
Sunday, Feb 12, 2006
Financial Daily from THE HINDU group of publications Sunday, Feb 12, 2006 |
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Investment World
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Open Offers Markets - Open Offers FCI OEN Connectors: Reject
The offer is pursuant to the acquisition of the connectors business by Fidji Luxco from the Areva Group, which the holding company of FCI OEN Connectors. Consequent to the acquisition at the global level, Fidji Luxco has acquired 67.8 per cent stake in FCI OEN Connectors. In compliance with the SEBI requirements, the open offer is being made to the shareholders of FCI OEN. The offer closes on March 6 and Kotak Mahindra Capital Company is the manager to the offer. FCI OEN Connectors makes electronic connectors that find application in the telecom, automotive, electrical and power industries. The company has been identified as a sourcing hub for global markets. To cater to the growing demand, it has steadily ramped up production capacity over the recent years. The impact of these initiatives is reflected in the form of an improved financial performance over the recent quarter. For the quarter-ended September 2005, revenues rose 17 per cent to Rs 36 crore and the post-tax earnings 42 per cent to Rs 5 crore. Exports accounted for about 60 per cent of the revenues this quarter. The presence across a wide spectrum of industries lends a degree of stability to the earnings stream. The growing export business and the entry into automotive connectors segment is likely to help FCI OEN sustain the growth momentum. Taking into account these factors, investors may reject the open offer. Considering the growth prospects and the prevailing share price of Rs 398, there is no incentive for shareholders to accept the offer made by Fidji Luxco.
B. Krishnakumar
More Stories on : Open Offers | Open Offers | Electronics
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