Friday, March 5, 2010

Zicom Electronic Security Systems Ltd. sold its business to Schneider Electric

Zicom Electronic Security Systems Ltd., on March 5, 2010, announced that it is going to sell two of its businesses to Schneider Electric, a French power and control solutions and security systems manufacturer. Zicom signed a Business Transfer Agreement with Schneider Electric under which, Schneider would acquire Zicom’s Building Solutions Group (BSG) and Special Projects Group (SPG) businesses for an amount of Rs 2.25 billion. Manohar Bidaye, Chairman, Zicom said that with the money acquired from selling these businesses, Zicom would clear its debts.

Mumbai based Zicom is India’s largest independent electronic security systems provider, which designs electronic security solutions for businesses, government, commercial and residential properties. Schneider Electric is based in Rueil-Malmaison, France.

After this announcement, shares of Zicom Electronic Security Systems Ltd. advanced 14% to Rs.128.2 at Bombay Stock Exchange. This is the highest gain made by the company since August 2008.

On that same day, Zicom board of directors announced that they would go for a major restructure of their businesses and focus on “high growth sunrise sectors. ”

Zicom would not do the same type business which it sold to Schneider and current managing director Pramoud Rao, and Manohar Bidaye would provide consultancy to the company.

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