Standard Chartered Private Equity has bought 10% stake in Chennai-based Redington India Limited for Rs.365.13 Cr, while ECL Finance Ltd, the NBFC arm of Edelweiss has bought 2% stake in Redington for Rs.73 Cr.
StanChart PE and ECL Finance have bought the shares from promoter Redington Mauritius and Synnex Mauritius, a unit of Taiwanese IT distributor Synnex Technology International Corp. The total deal is valued at around Rs.438 Cr.
The transaction took place via a block deal on the BSE at Rs 91.9 a share, which was about 4% premium to the scrip's closing price of Rs 88.50 on BSE on Monday.
Redington MD R Srinivasan said that the company wanted to continue as a management run firm and wanted none of the shareholders to hold over a 26% stake.
Post this deal, the stake of Taiwan-based IT products distributor Synnex Technology International will come down to 23.7% from earlier 27.8%. It had bought 36.31% stake for $24 Mn in Redington in 2004 and since then, its stake has been diluted due to further share issue.
Redington Mauritius stake has come down from 28.80% to 21% with this deal. Redington's promoters has been reducing its stake since last July, when it sold 14% stake in the company, reducing its stake to 29%.
The shareholders of Redington (Mauritius) are Chanrai Investment Corporation (70%), R Jayachandran, a director of the Kewalram Chanrai Group (15%), and R Srinivasan (15%).
Set up in 1961, Redington India, a part of Singapore-based Kewalram Chanrai Group, is an integrated supply chain solutions provider of IT and non-IT products. As on Marhc 2010, redington along with its subsidiaries has more than 75 brands, 23,600 channel partners, 78 warehouses and 68 sales offices.
Redington India is looking for acquistions in the Middle East or Africa and has earmarked a budget of $50 Mn. In 2010, it bought 49% stake in Turkish computer equipment distributor - Arena Bilgisayar Sanayi & Ticaret AS for about $43 Mn.
Redington India is backed by T Rowe Price and Chryscapital.
Chryscapital had invested $14.80 Mn March'06 and exited by selling its stake in two tranches in 2008-09.
As on May 27, promoters held 28.8% in Redington, whereas foreign and domestic institutional investors held 31.1% and 3.9%, respectively.
Redington India posted FY2010-11 consolidated net revenues of Rs.17,467.7 Cr as against Rs.13,771.1 Cr in the previous year. The consolidated net profit for FY2011 stood at Rs.226 Cr, compared with Rs.184.3 Cr a year ago.
Earlier this year, StanChart PE along with Jacob Ballas and Old Lane, a fund owned by Citigroup invested $200 Mn in GMR Airports Holding Ltd, while last year it invested $200 million along with Kohlberg Kravis Roberts and New Silk Route Partners in Coffee Day Resorts Private Limited.