Malaysian firm eyes ailing Incab

Malaysian firm eyes ailing Incab

KUALA LUMPUR (AFP): Malaysia's Leader Universal Holdings Bhd. said yesterday it had teamed up with an Indian industrialist to acquire control of India's Incab Industries Ltd. and enter India's cable market.

The Malaysian cable maker said in a statement it had also signed a memorandum of understanding with the main creditors of Incab to rehabilitate and restructure the loss-making Indian cable-making company.

"Leader Universal and P.K. Saraf are jointly to first acquire a nine percent stake, or 1.17 million shares, in Incab before raising their stakeholding to 51 percent or more to allow them board seats in Incab," a company spokesman said.

Leader Universal and Saraf would acquire further shares through direct subscription to Incab either by way of a rights issue or preferential allotment, the company said in a statement.

The company did not disclose the proposed acquisition cost. Leader Universal said the acquisition would be conducted through its unit Leader Universal (Mauritius) Company Ltd., in which Leader Universal holds 55 percent stake and Saraf 45 percent.

Leader Universal and Saraf signed an agreement to jointly purchase Incab shares on December 12, a week after signing a pact with the creditors to restructure Incab's liabilities.

Apart from assisting Incab's financial rehabilitation and restructuring scheme, Leader Universal said it wanted to acquire Incab to enter India's cable market.

Incab was established in 1920 by British Insulated Calendar Cables, United Kingdom, as Indian Enfield Co. Ltd., which was changed to The Indian Cable Company Ltd. in 1922 and then to Incab Industries Ltd. in 1987.

Leader Universal and Saraf had earlier appointed an Indian merchant bank, ICICI Securities Ltd., to determine the extent of funds required to rehabilitate Incab. Leader Universal stock was unchanged at 5.20 ringgit (US$2.08) on the local bourse at midday Monday.