Panasonic is in negotiations to buy a control participation in business-to-business (B2B) attacks of light focus lighting and fipures, in what would be his second acquisition in the electric segment in India after almost two decades, said people aware of the matter.The Sheth family, founding shareholders of the Focus Group, owns 55% of the company listed in NSE. The rest is with the public, including individuals and corporate bodies.
Panasonic is trying to acquire the entire participation of the promoters in the lighting of the focus, said the people mentioned above. A potential agreement would trigger an open offer mandatory to the company’s public shareholders for at least 26% of shares as for the ifbi guidelines, they said.
The acquisition would cost Panasonic based in Osaka of approximately 526 crores, including the open offer of 26%, based on the current market capitalization of Focus Lighting, according to ET’s calculations.According to the people mentioned above, the negotiations are in an advanced phase, but the two diligence of attention has led to issues of light that must be addressed before placing the contract.
A spokesman for Panasonic’s Electric Works Business Divisions (ex anchor) said that speculation “seems unfounded”. “This information has not been shared and, as far as we know, there is no such facts,” he said.
Focus, which listed on the Board of Directors of the small and medium -sized enterprises (SME) of NSE in 2017, did not answer the applications of ET.
The company makes light accessories for commercial uses such as facades and interiors of the retail shop. Its customers includes Riliance Retail and DLF.
The B2B Indian market for lighting products and fixtures is not mostly organized with the presence of several small and local in the segment. Matsushita Electric, a previous Avatar of Panasonic, had acquired the name of the Electricals family in 2007, obtaining a support point in the business-to-customer electrical segment (B2C) and in the light adaptation segment.
The Electric Works business, which includes LED lighting products, switch and wires, cables, intelligent home products and energy solutions is the largest revenue collaborator for Panasonic in India, which represents over half of the sales of Panasonic Life Solutions India Pvt Ltd, the top extent. The rest comes from AC, televisions, industrial and system solutions, lithium -ion batteries and intelligent factory solutions of SMT machines, robotic weapons and welding machines.
Panasonic’s efforts to acquire control of the Focus Group underline its strategy to improve its imprint in the B2B segment, its largest revenue generator globally.
