StanChart PE spends £51m in Indian deal

STANDARD Chartered Private Equity has snapped up a 10 per cent stake in Redington India, the IT supply chain manager, disclosures on the Bombay Stock Exchange showed yesterday.

StanChart Private Equity, which is based in Mauritius, bought 39.7m shares at 91.89 rupees each for a total outlay of just over £51m. ECL Finance, an arm of the investment bank Edelweiss, also bought into Redington India with a two per cent stake yesterday.

The sellers in the block deals were Redington itself, which offloaded a 7.7 per cent stake, and Taiwan-based Synnex Technology. Both benefited from a 3.7 per cent premium to the firm’s share price of 88.5 rupees yesterday.

Redington, whose clients include Microsoft, Canon and Hewlett Packard, specialises in distributing and providing warrantees on a variety of electronic goods in India, the Middle East, Africa and Singapore, although StanChart Private Equity has bought a stake only in the Indian business.

StanChart was said to be vying with Blackstone to buy a significant chunk of the company, seeing it as a play on growing emerging market demand for consumer goods.

The deal saw Redington India’s share price spike to the deal price before retreating yesterday.

StanChart Private Equity did not return calls for comment.