Paramount Communications Ltd

Paramount Communications Ltd has informed the Exchange regarding the acquisition of the business of AEI Cables, UK in an all cash deal. AEI Cables has a turnover of approximately GBP 65 million (INR 533 crores). Elara Capital Plc, a London- based mid-market advisor, was the sole corporate finance adviser for this transaction. This is Elara Capital's first cross border transaction involving two listed companies. Paramount has a strong presence in India and is the key cable player in all infrastructure sectors including power, railways, telecom and industrial projects. AEI Cables is a leading manufacturer of cables solutions to global markets and is a wholly owned subsidiary of the international electronic sensors and components group TT Electronics plc, listed on The London Stock Exchange. Cables supplied to the defence, rail, power and mining sectors are specialist cables manufactured with the proprietary know how of AEI, developed over the last few decades. Also, AEI has world class cutting edge research and development facilities which positions AEI to meet the ever changing demands of customers for these specialist cables. AEI cables traces its history back to the year 1837 when WT Henley started manufacturing covered wires in London and the year 1858 when Sir William Siemens founded Siemens and Halske to manufacture submarine cables. AEI was formed by the Edison Swan Electric Company in 1929, which, over the years merged with the cables businesses of Siemens Brothers and Henley's. AEI Cables became a part of the General Electric Company Group in 1967 and was acquired by TT electronics plc in 1997. Cables are manufactured at the production facility at Birtley, near Newcastle - upon - Tyne in the North East of England. AEI Cables is one of the oldest, well recognized and respected brands in the UK and other markets worldwide. The Company has strong long term relationships with major UK customers. The acquisition of AEI Cables by Paramount will: 1) Make Paramount the largest listed Indian company in the cable industry with an annual turnover of over INR 1,100 crores. 2) Significantly strengthen its product range for infrastructure segments such as Railways, Mining, Power and Defense in India and the UK. 3) Enable faster expansion in International Markets such as Far East, Middle East and Africa, where the AEI brand is well established. 4) Access to cutting edge technical know how to continue developing new range of products to keep its competitive edge in India and internationally. 5) Significantly strengthen the consolidated balance sheet of Paramount and is accretive to the net worth by about INR 110 crores. 6) The acquisition is substantially funded through borrowings by Paramount's new wholly-owned UK subsidiary against the AEI Cables assets which it has acquired, without recourse to Paramount. Paramount is only infusing INR 25 crores out of the proceeds of FCCBs