French electric equipment maker Legrand had made an offer to buy the switchgear business of Indo Asian Fusegear for a consideration of Rs. 600 crore.
Legrand will acquire the switchgear business for Rs. 495 crore. In addition, the French company will pay a one-time, non-compete fee of Rs. 35 crore to Indo Asian. The non-compete agreement is valid for five years.
Legrand has further agreed to pay a similar amount (Rs. 35 crore) in non-compete fee to the promoters of Indo Asian as well. That apart, the buyer has also agreed to acquire all the switchgear brands owned by Indo Asian Marketing, a firm promoted by the Indo Asian promoters, for a consideration of Rs. 35 crore, Indo Asian informed the Bombay Stock Exchange.
“The board of directors has approved Legrand's offer for the purpose of switchgear division of Indo Asian Fusegear,” Indo Asian Fusegear Chairman and Managing Director V. P. Mahendru said.
