Redington Subsidiary To Buy Turkish Company

Redington (India) spurts on reports ''Redington Gulf FZE'', a step down subsidiary of the Company has entered into agreement with Turkey (Linkplus).

The company has informed BSE that ''Redington Gulf FZE'', a step down subsidiary of the Company has entered into a definitive agreement to acquire 70% of Linkplus Bilgisayar Sistemleri Sanayi ve Ticaret A.S, Turkey (Linkplus). The balance 30% will be acquired over a 3 year period.

This proposed acquisition is subject to regulatory approvals of authorities in Turkey. Linkplus established in 1995 and is a leading ORACLE Distributor in Turkey. As per the Company, it has been valued around 6X future earnings.

The stock hit a high of Rs 126.60 until now. The stock hit a 52-week high of Rs 147.65 on 5th December 2014. The stock hit a 52-week low of Rs 91.20 on 19th June 2015.

The stock is currently trading at Rs 120, up by Rs 5.35 or 4.67% from its previous closing of Rs 114.65 on the BSE.

The company's consolidated net profit in Q1FY16 has marginally increased by 5.5% to Rs 81.15 crore from Rs 76.92 crore in a year ago period.

Redington (India) and its subsidiaries operate mainly in information technology product distribution business besides supply chain solutions, after sales service of information technology and other products, and financial services.

The Company is a provider of information technology, telecom, lifestyle and consumer electronics products. The Company and its subsidiaries operate in India, South Asia, the Middle East, Turkey and Africa.

The Company’s segments include distribution, financial service business and others. The others segment includes service income and supply chain business. The Company has its presence in approximately 24 countries, supported by a distribution network of more than 33,000 channel partners and facilitated by Automated Distribution Centers.