Paramount Communications acquires UK based AEI cables

Paramount Communications has announced the acquisition of the business of AEI cables in an all cash deal on 03 September 2007. AEI cables has a turnover of approximately GBP 65 million.

Elara Capital Plc, a London- based mid-market advisor, was the sole corporate finance adviser to the company for this transaction. This is Elara Capital’s first cross border transaction involving two listed companies.

The acquisition of AEI cables by the company will make the company the largest listed Indian company in the cable industry with an annual turnover of over Rs 1,100 crore.

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. The company is only infusing Rs 25 crore out of the proceeds of FCCBs.