Chennai  :

In a move that turns investment banker into an investor by itself, MAPE Advisory Group and auto-component maker Igarashi Electric Works of Japan have bought out the entire 97.9% stake held by Blackstone Capital (Singapore) and BFIP (CAYMAN) in Agile Electric Sub Assembly for $106.4 million. Agile owns Igarashi Motors.

The transaction is subject to customary closing conditions and upon successful completion of transaction, Igarashi Electric Works and MAPE Advisory Group will be the new promoters of the company.

Agile Electric is involved in production of DC motor sub-assemblies, micro motors. It later started to make AC motors in 2012. The company can produce nearly 40 million components from its plant inside Madras Export Processing Zone (MEPZ). Agile exports majority of its products to Delphi Automotive, Inteva Products and Bosch.

Igarashi Motors was the original promoter of the company along with Crompton Greaves. “Igarashi stepped out of the company in favour of HBL Power Systems, after there was some financial stress back home,” sources said. HBL sold the company to Blackstone in July 2013. Blackstone completed a management buy-out with an investment of $74 million. Interestingly, Mape Advisory was the investment banker who facilitated Blackstone transaction. “Igarashi wanted a local partner and we decided we will join them,” said M Ramprasad, chairman, Mape Advisory.

With Blackstone exiting the company, Igarashi and Mape will make an open offer to the public shareholders of lgarashi Motors India as per the applicable provisions of SEBI SAST Regulations 2011 for acquisition of upto 26% of the voting share capital of Igarashi Motors. The obligation to acquire shares pursuant to the open offer will be triggered only on the successful closure of the transaction of Agile Electric Sub Assembly as this would lead to an indirect change in control of Igarashi Motors, the company said in a filing to the Bombay Stock Exchange.

Religare Capital Markets has been appointed as the Manager to the open offer and the offer price as per applicable regulations is expected to be in the range of Rs 307-308 per share. The estimated size of the open offer will be about $ 41 million, the company said.

source: http://www.timesofindia.indiatimes.com / The Times of India / Home> City> Chennai / TNN / January 31st, 2015