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Actis agrees exit from India's Phoenix Lamps

  • Holden Mann
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Private equity firm Actis has reached an agreement to exit its stake in Indian automotive lighting manufacturer Phoenix Lamps to cable maker Suprajit Engineering.

The proposed sale would leave Suprajit with at least 51% and up to 62% of Phoenix, according to Suprajit's offer letter. The latter would represent the entire stake held by Actis through its subsidiaries Argon India Limited and Argon South Asia, and will depend on the acceptance level of Phoenix's shares in the mandatory open offer.

Suprajit will pay at least INR1.27 billion ($19.9 million), and INR1.54 billion in all if Actis sells its entire stake. The sale is scheduled to be concluded by October.

The deal represents a substantial loss for Actis, which paid about INR3.15 billion over 2006-2007 for its stake in Phoenix. Losses by the company's general lighting division led Actis to buy out the division in 2013 for INR1.6 billion.

Suprajit, founded in 1985, is India's leading manufacturer of automotive cables. It also makes cables for non-automotive uses such as household appliances and construction equipment. In a statement, Suprajit's Managing Director Ajith Kumar Rai called Phoenix "a strategic fit in Suprajit's plan to diversify beyond cables."

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