Tata Technologies Ltd, a subsidiary of Tata Motors Ltd, has announced its intention to bid, through its USA based arm Tata Technologies Inc. in an all-cash deal, for a 100% stake in INCAT International Plc for £53.4million.
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The offer price of £2.20 a share is a 4% premium over the company’s 17 August 2005 price of £2.115 on the Alternative Investment Market (AIM) of the London Stock Exchange.
INCAT’s board has approved the offer and recommended the acceptance of the offer to its shareholders.
Both India-based TTL and UK-based INCAT are in product lifecycle management and engineering & design services mainly catering to the automotive, aerospace and engineering sectors.
The companies complement each other with TTL offering offshore capabilities in engineering automation services and INCAT specialising in high-end onshore service. Together they will be able to offer a very competitive seamless onshore/offshore service.
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By GlobalDataTTL CEO Patrick McGoldrick said INTAC’s ‘broad geographic platform and extensive customer base’ would extend his firm’s strong organic growth. INCAT chairman Ross Bunce was equally optimistic, citing shareholder value and future growth as results of the acquisition.
For the year ended March 2005, TTL posted a turnover of £23 million and net profit of £0.98m. It employs 2,000 people with large automotive customers globally. INCAT generated a turnover of £65.3m and an operating profit of £2.4m in the year ended 31 August 2004. It has 650 employees with automobile, aerospace and engineering industries clients in North America, Europe and the Asia Pacific region.
Deepesh Rathore / Tilak Swarup
