Electronic security solutions provider,Zicom Electronic Security Systems Ltd will sell assets of its electronic security system business to the Indian arm of Germany-based electrical engineering company Schneider Electric for about Rs 225 crore,a top company official said. "In order to improve our focus on the retail segment,expected to deliver high growth with higher margins,we have signed a business transfer agreement with Schneider Electric for the integration business comprising Building Solutions Group (BSG) and Special Project Group (SPG)," Zicom Electronic Security System's Chairman Manohar Bidaye told reporters. Zicom will receive Rs 225 crore from this deal. The fund will be used to repay debt and make the company debt free and for diversification of projects,Bidaye said. The company will continue to retain the brand name Zicom. Transaction excludes Zicom's other group companies,such as retail business and Dubai-based joint venture,Bidaye said. Zicom said the deal was at a premium over the current market cap of approximately Rs 140 crore,considering that the retained business contributes 52 per cent of the total group revenue of Rs 375 crore for the nine-month period ended December 2010. The deal,subject to shareholders' approval and other conditions,is likely to close in April,Schneider said in a separate statement.
