Paramount Comm acquires UK's AEI Cables

New Delhi, Sept 4: Leading cable maker Paramount Communications Ltd today said it has acquired UK-based AEI Cables, a unit of TT Electronics in an all-cash deal for an undisclosed amount.

''The acquisition is substantially funded through borrowings by the company's new wholly-owned UK subsidiary against the AEI Cables assets which it has acquired, without recourse to the company while Paramount is only infusing Rs 25 crores out of the proceeds of FCCBs,'' said a statement.

''The acquisition of AEI Cables will make Paramount the largest listed Indian company in the cable industry with an annual turnover of over Rs 1,100 crores,'' Paramount Chairman and CEO Sanjay Aggarwal said.

The acquisition will help the company further expand in the international markets like the Far East, West Asia, East and Africa, while significantly strengthening the product range for infrastructure segments such as railways, mining, power and defence in India and the UK.

It will also strengthen the consolidated balance sheet of Paramount and is accretive to the net worth by about Rs 110 crores, the statement added.

Paramount is a key cable player in all infrastructure sectors including power, railways, telecom and industrial projects.

UNI