Bengaluru-based Centum Electronics Ltd has agreed to sell its entire 51% stake in a joint venture with Rakon Ltd to the New Zealand electronics maker.
The company will sell the stake in Centum Rakon India Pvt. Ltd for $5.5 million (Rs 36.5 crore), it said in a stock-exchange disclosure. Centum Rakon makes frequency-control products for telecom infrastructure. After the acquisition, Rakon’s holding in Centum Rakon will go up to 100%, reported VC Circle.
According to the agreement, Centum Electronics will receive 75% of the deal amount immediately and the remaining 25% over a period of 18 months from the signing date. The deal is likely to be closed by Saturday.
Centum Rakon reported revenue of Rs 74.4 crore for the year through March 2017. In a February filing, Centum said the business carried on by Centum Rakon was not core to its strategy.
“Telecom markets worldwide are depressed, and we do not see any upturn in the immediate future, thereby we may not see any significant improvement in the operations of Centum Rakon,” Centum said in its 2016-17 annual report.
