Phoenix deal: it’s advantage Suprajit, feel investors

Discussion in 'Must-Read Interviews, Articles & News Items' started by Srouta Mukherjee, May 4, 2016.

  1. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Mar 28, 2015
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    Certain minority shareholders of automotive lighting company Phoenix Lamps are unhappy with the terms of the company’s acquisition by Suprajit Engineering.

    61.93% stake buy

    According to them, Phoenix has been undervalued by the proposed share swap ratio and the interests of Phoenix’s minority shareholders are being compromised to benefit Suprajit. Last year, Suprajit had bought 61.93 per cent stake in Phoenix from PE investor Actis Capital as a strategic investor and management control passed on to Suprajit. On April 18, Bengaluru-based auto component maker Suprajit Engineering announced its plans to fully take over its partly-owned subsidiary Phoenix Lamps.

    “The merger ratio has been set at four shares of Suprajit (₹1 each) for every five shares of Phoenix (₹10 each). While investors in Phoenix are happy with the changes introduced by Suprajit and its pending takeover of the company, the share swap ratio is “unfairly favourable to Suprajit shareholders at the cost of Phoenix minority shareholders,” according to N Arunagiri, Founder-CEO of portfolio management company TrustLine.'