The promoters of Noida-based Phoenix Lamps, a leading player in automotive lighting, have sold their entire stake to Argon India and Argon South Asia, companies promoted by investment firm, Actis. After the acquisition comes through, the new management will initiate a change in control/ management. The acquirers do not have any plans to dispose of or otherwise encumber any assets of Phoenix Lamps in the two years from the date of the closure of its offer except in the ordinary course of business.
In a public announcement issued by Yes Bank to the shareholders of the company, the former noted that on July 3, 2006 a warrant subscription and share purchase agreement was entered into by Argon India and Argon South Asia with the promoters of Phoenix Lamps. The promoters included Bhushan Kumar Gupta, Hulas Rahul Gupta, Priya Desh Gupta and Abha Gupta.
As per the new agreement Argon will acquire the total shareholding of 87,35,727 fully paid up equity shares representing 36.63 percent of the current paid up equity share capital of Phoenix at a price of Rs 152 per share. Additionally the sellers would be paid a non-compete consideration aggregating Rs 33.19 crore in cash. Around 41.70 lakh warrants were allotted to the Argon companies.
According to the document prepared by Yes Bank, Actis India will make investments in the developing Indian market which will typically be medium to long term in nature with the principal object of generating capital growth. The company’s limited partners comprise international banks, mutual funds, pension funds and other such institutional investors. Efforts by Autocar Professional to seek the views of HR Gupta on his sell-out proved futile as he remained incommunicado.
Phoenix has two plants in the special economic zone at Noida. The third is outside the SEZ area and a fourth plant is located at Dehradun. It is now in the process of setting up its fifth plant at Haridwar. The company’s products include automobile headlamps under the Halonix brand, H3-type halogen lamps for fog lamps, J-type halogen lamps for general lighting applications, and compact fluorescent lamps (single/double H-type).