UK based private equity firm Actis to sell out its stake in Halonix Ltd

Actis is mulling the sale of its stake in Halonix Ltd for $56 million. Actis is a UK based private equity firm. The firm is considering the sell of its stake to a strategic investor. The 66 per cent stake in Halonix Ltd was acquired back in 2007 through Actis India Fund. The transaction would value the Halonix Ltd stake at the selling price, $56 million.

The transaction for the 66 per cent stake acquisition in Halonix Ltd begun with the buyout of promoter B.K Gupta’s 47 per cent stake in Halonix. The buyout of Gupta cost Actis about Rs 190 crore for every Halonix Ltd share. That was back in 2006, and was quickly followed by the mandatory open offer, leading to Actis gaining full control of the company by March'07.

However, in July speculation broke out that Actis was planning to buy the general lighting business of Halonix by spinning it off into a different unit named Halonix Technologies. The general lighting business contributed 58% of its Rs 402 Crore revenue for the year ended march 2009. Halonix Ltd was previously called Phoenix Lamps Ltd and was promoted in firstly a decade ago as an Indo Japanese joint venture called Phoenix Electric Co. & Soei Tsusho Co.

Halonix Ltd manufactures compact fluorescent lamps for general lighting and halogen lamps for automotive sector. Actis has appointed Enam Securities for finding a buyer. Halonix has a production capacity of more than 60 million units per annum in automobile halogen bulbs and this is expected to be increased by about 25 million units over three years.

It has captured 50% market share in passenger vehicles and more than 80% in motorcycles. Research data has shown that private equity investment in India has shown an impressive performance recently, with an increase in the number of deals in recent months. A Reuters’ research shows that deals in the first half of this year topped $2.05 billion when compared to $964 million over the same period last year.

Actis is a leading private equity investor in emerging markets and has been investing exclusively in these markets for nearly 60 years. The firm has since raised over US$7.3 billion funds to date and has over 100 investment professionals in 9 offices throughout Africa, China, Latin America, South and South East Asia. In the last ten years, it invested US$3.1billion in businesses in the emerging markets.

8 Oct 2010.