FCI OEN To Sell Stake In Arm To Souriau Of France

Chennai, February 24: | Updated: Feb 25 2003, 05:30am hrs
The Framatome Connectors International OEN (FC OEN), a 63 per cent subsidiary of Framatome Connectors International (FCI), France, has decided to sell its entire stake in its wholly-owned subsidiary OCL Interconnection Systems Ltd, to Souriau, France. Souriau is also a subsidiary of FCI, France. Top company officials, when contacted, confirmed to FE that the company has decided to exit from the venture to prune its expenditure. We have decided to sell our entire stake in OCL to Souriau, France.

The move is part of our effort to trim expenditure and is expected to be completed once we get the necessary clearance from foreign investment promotion board (FIPB), Reserve Bank of India (RBI) and other regulatory authorities, a top company official said. The company has appointed chartered accountant firm Verma & Verma to do the necessary valuation. Once the valuation is completed, we will arrive at the sale price, the official added. FCI OEN holds 2,00,000 equity shares of Rs 10 each in the subsidiary company.

Incorporated in 1994, OCL Interconnection was engaged in the business of manufacturing cable harnessing equipment. In September 2000, the assets and liabilities of the company was acquired through a slump sale by the FCI OEN and the company has been remaining defunct since then.

Originally, FCI OEN held 51 per cent of the paid up capital of OCL Interconnect. The balance 49 per cent was acquired by FCI OEN in 2000 from Interface Connectronics (Pvt) Ltd, thereby increasing its equity stake in the company to 100 per cent. FCI, France may use the OCL Interconnection for some new line of business.

Incorporated in 1981, the Kochi-based FCI OEN manufactures professional grade connectors for various industrial segments including telecom. The companys product offering include connectors like Rack and Panel Connectors, Terminal Connectors, Flat Cable Connectors, Circular Connectors, PCB Connectors, Heavy Duty Connectors and IC Sockets. FCI France has been the technology supplier of the company since its inception, and In 1989, it acquired 26 per cent stake in the Indian company which it enhanced further to 40 per cent in August 1993. FCI further raised its stake to 51 per cent by subscribing to a preferential issue of 7,59,863 equity shares at a premium of Rs 75 per share.