Salzer Electronics jumps on plans to acquire stake in Kaycee Industries
Salzer Electronics Limited has entered into a share purchase agreement for acquisition of shares representing 72.32 per cent stake in Kaycee Industries Limited from its principal promoter Universal Trust Private Limited.
Kaycee Indutries Limited is a Mumbai-based company having net worth of Rs 12.94 crore and turnover of Rs 25.01 crore as on March 31, 2019. It is the manufacturer of electrical products. Its principal products include rotary switches, rotary cam switches, micro and toggle switches, weather tight switches, breaker control switches, water meters, counters and fuse fittings.
The company has stated that the acquisition is not a related party transaction, except for Mr Doraiswamy, the promoter of Salzer Electronics, who holds two shares in his personal capacity in Kaycee Industries.
The completion of acquisition process is expected during the second quarter of FY20. The cost of acquisition is Rs 21.69 crore approx. and this consideration would be paid in cash. Salzer will make an open offer at Rs 3,475 per share for acquisition of 26 per cent stake in Kaycee Industries.
On Friday, the stock of Salzer Electronics opened at Rs 121.40. During the day, it jumped 17.4 per cent to make intra-day high of Rs 138 and finally closed at Rs 135.40.