Schneider Electric buys out Luminous
Schneider Electric on Monday signed an agreement to acquire 74% in leading inverter-maker Luminous Power Technologies for Rs 1,400 crore (¤ 215 million), a move that will help the French major strengthen its access in the retail market for electrical goods. HT reports.india Updated: May 31, 2011 22:59 IST
Schneider Electric on Monday signed an agreement to acquire 74% in leading inverter-maker Luminous Power Technologies for Rs 1,400 crore (¤ 215 million), a move that will help the French major strengthen its access in the retail market for electrical goods.
"The remaining 26% owned by the founders will be subject to put and call options," Schneider Electric said in a statement.
A call option is an option where the buyer of the option gets the right but not the obligation to buy at a certain specified price. A put option is an option where the seller gets the right to sell at a particular price.
"I see this as an important milestone in Schneider Electric's India journey," Olivier Blum, country president & managing director, Schneider Electric, told HT.
"The partnership helps us to broaden our product portfolio and become the leader in the Indian inverters and secured power market. It also allows us to gain access to a complementary retail network, he said."
Powered by its employee strength of 3,000-plus at 8 different locations in India and one in China, revenues of Luminous Power stood at Rs 1,100 crore during 2010-11.
Th acquisition is expected to be accretive on earnings per share from the first year, a statement from Schneider Electric said. "After this acquisition, Schneider Electric can report a significant increase of its size in India."
"This acquisition is another significant step for SchneiderElectric to become a leader in new economies," said Laurent Vernerey, executive vice-president, IT business, Schneider Electric. "Luminous will also provide a platform for Schneider Electric to expand the inverter market into other new economies, particularly West Asia, Africa and South-East Asia."
First Published: May 31, 2011 22:57 IST