Rakon Limited completed the acquisition of remaining 51% stake in Centum Rakon India Private Limited from Centum Electronics Limited.
May 01, 2018
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Rakon Limited (NZSE:RAK) signed a non-binding terms sheet to acquire the remaining 51% stake in Centum Rakon India Private Limited from Centum Electronics Limited (BSE:517544) for $5.5 million on February 26, 2018. Rakon Limited executed share purchase agreement to acquire the remaining 51% stake in Centum Rakon India Private Limited from Centum Electronics Limited for $5.5 million on April 27, 2018. As per the terms, Rakon will pay to Centum 75% of consideration representing $4.13 million on signing of the definitive agreements and the balance 25% representing $1.38 million on completion of transition or eighteen months from the date of signing whichever is earlier. Consideration will be funded from Rakon Limited existing cash reserves.
For the year ended March 31, 2017, Centum Rakon India Private Limited reported total sales revenue of $11.48 million and net assets of $9.86 million. The transaction is subject to various approvals, including the final approval of each party's Board of Directors and Centum Electronics Limited's shareholders. As of February 26, 2018, board of directors of Centum Electronics Limited approved the transaction. No deadline has been set to complete the proposed transaction. The transaction is expected to complete on or before May 5, 2018. As of April 30, 2018, completion is expected on May 2, 2018. The acquisition will be value accretive for Rakon Limited. AZB & Partners acted as legal advisor to Centum Electronics Limited.
Rakon Limited (NZSE:RAK) completed the acquisition of remaining 51% stake in Centum Rakon India Private Limited from Centum Electronics Limited (BSE:517544) on May 2, 2018.
Centum Electronics Limited is an India-based company, which is engaged in electronic system design and manufacturing. It designs manufacture and also exports electronic products. It offers products including electronic systems, subsystems, modules, printed circuit boards assembly, and design services. It is primarily involved in the manufacture of Advanced Microelectronics Modules, Frequency Control Products, Printed Circuit Board Assembly (PCBA), and Resistor Networks catering to the markets. It also offers a range of manufacturing and test solutions, including box builds, system integration, PCBA, and electromechanical assemblies. It provides services such as Feasibility, Architecture, System development, System simulation, Aftermarket/Test tools design, Qualification batch, Test tools acceptance, Value engineering, Obsolescence mgmt., Cost analysis, Test tools mgmt., and Product migration. It serves various sectors Defense, Aerospace, Space, Medical, Transportation, and Industrial.
CENTUM ELECTRONICS LIMITED 
