Australia-based Tech Pacific Holdings is in talks with the buyer and the deal is expected to be closed shortly.
Shailendra Gupta, MD, Tech Pac, was not willing to disclose the name of the buyer at this juncture. He, however, said that the buyer is not from the trade.
Hagenmeyer, the owner of Tech Pac, has a $5 billion electrical distribution business. It had announced some time ago that it wanted to sell off Tech Pacific to concentrate on its core business.
If the takeover comes through, it will be the second time the company will change hands within a period of two years. Originally, the company was a joint venture between Godrej & Boyce and Tech Pacific and was called Godrej Pacific Technologies Ltd
In the middle of 1999, Tech Pacific bought the stake from Godrej & Boyce and established Tech Pac as a 100 percent Indian subsidiary. The change worked out well for Tech Pac that quickly took to new technologies for doing business that the parent company was using across Asia-Pacific region.
Meanwhile, Shailendra says Tech Pac had a very good AMJ quarter despite the market slowdown. Says he, “The buying went up substantially in June making it one of the best months in recent times.”
However, market reports say that partners did not find ready stocks of HP printers, Samsung hard disks and Intel CPUs with Tech Pac. Also, top managers were not committing on prices or stock availability.
But Shailendra denied this outright and said that Tech Pac had stocks of all items. He speculated that partners may have passed adverse comments perhaps because they did not get the right price from the distributor.