Electronics Production | July 01, 2010
TT electronics sells off 2 units
UK-based manufacturer TT Electronics has sold off 2 units to Delta Magnets.
For a cumulative consideration of GBP 1.7 million, Delta Magnets had successfully purchased the UK based company MMG Magdev Ltd and the Chennai based MMG India Pvt Ltd. The investment will see Delta Magnets Ltd takeover the two firms from UK-based EMS-provider TT Electronics. TT Electronics now expects its first half results to be in line with its expectations. Previously, the British firm had sold off its South African unit, Wire Systems Technology, in May and subsequently used the accrued funds from the sale to reduce its net debt that peaked at £54.6 million, a fall from the £56.9 million at the start of 2010. According to the company, the enhancement in trading had picked up in the first four months of 2010 with sales ahead of last year’s period across all divisions. Shares of TT Electronics, which supplies components to manufacturers in the defense, aerospace, medical and automotive markets, closed at 96.25 pence Thursday on the London Stock Exchange. Delta Magnets Ltd, in a statement said its board had approved the acquisition of 100% stake in MMG Magdev Ltd and Chennai’s MMG India Pvt Ltd, but did not disclose the details of the deal. The investment in the two companies will, additionally, help bolster Delta Magnets presence for magnets domestically, as well as in the global market. Delta Magnets manufactures arc, ring and hard ferrite permanent magnets, which are used in the automotive and other industries. The Mumbai based company also manufactures and supplies magnet powder used in various applications. It serves companies in consumer electronics, engineering, telecommunication and power sector. The company reported a turnover of Rs.8 Cr in 2008/2009 with net loss of Rs.1.2 Cr for the same period.