Redington India's shares change hands through Block deal

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Monday, July 4, 2011, 15:31 [IST]

R Srinivasan, Managing Director of Redington India, told a leading business channel that two shareholders, Synnex from Taiwan and Kewalram Chanrai Group from Singapore, reduced their stakes in the company, meanwhile StanChart, the Private Equity could be the likely buyer.

He said that the company, Redington had conveyed to its major investors that it did not want any of the shareholder to hold more 26%. This will ensure that the company remains a purely management run company.

"We have been talking to the two shareholders over the past that they should bring it down to 26% and looks like they took our advice and brought it down to below 26%," said Srinivasan.

Standard Chartered PE bought 12% of the company from both the shareholders for about approximately USD 98 million.

Explaining the plausible reason for StanChart's interest in Redington, Srinivasan said, 'StanChart Private Equity"s pattern is similar to that of Redington i.e. focus on emerging markets like Asia, Middle East and Africa.

The purchase was made via block deals window on the Bombay Stock Exchange. It has been reported in the media that the deal was at a 3.3% premium to Friday's closing share price. A total of 47.63 million shares of Redington, amounting to a 11.97 percent stake, changed hands at 91.90 rupees.

The company

Redington is in the business of end-to-end supply chain management. The focus is on South Asia, Middle East and Africa, the emerging markets. It has over operations across 18 countries.

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