Kolkata: Japan's largest electronics company, Panasonic Corp on Friday announced plans to acquire 76.2% stake in Firepro Systems, a Bangalore-based company in infrastructure protection and security solutions such as fire alarm, fire suppression, video surveillance and building management.
Panasonic has also decided to enter into a definitive agreement for subscription of new shares through its wholly-owned subsidiary, Anchor Electricals. Panasonic will acquire a portion of Firepro's ordinary shares owned by financial investors, while Anchor will invest in Firepro through a fresh issue of shares.
This will result in a significant majority stake for Panasonic Group in Firepro. After the acquisition, the existing shareholders will continue to hold 23.8% stake in Firepro. Existing shareholders, including NS Narendra, the founder chairman & managing director of Firepro, will continue to hold their stake in the company. Mr Narendra will also continue leading the company.
The acquisition is aimed to grow Panasonic's position beyond consumer electronics segment in the Indian market to emerge as a top electronics company by 2018. The move will allow Panasonic to venture into both housing and non-housing markets, along with its wholly-owned subsidiary Anchor.
Anchor is a top wiring device manufacturer in India with a robust sales network and brand strength. This move will also help in accelerating the introduction of a number of Panasonic group products in India.
Panasonic also intends to launch its own products in the non-housing segment through the Firepro-Anchor combine. Both Panasonic and Firepro aim to develop a solutions business with general contracting covering the whole package of design, installation and services for building facilities, utilising the engineering capabilities and client networking of Firepro, and the Panasonic's wide range of products and technologies.
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