Adam Investments to up stake in NetCom to 51% with Rs. 37.5 m
Friday, 19 September 2014 00:17
The Adam Investments Ltd. (AINV) Board of Directors has resolved to increase its shareholding in Network Communications Ltd. (NetCom) to 51% with an investment of Rs. 37.5 million.
As of now, AINV holds 42% stake in NetCom, which is involved in importing, manufacturing, distributing and retailing computer hardware, software, mobile devices and accessories.
“The acquisition will enable the company to collaborate synergies,” AINV said.
More importantly NetCom will now become a subsidiary from associate status and financial consolidation will take place.
NetCom’s assets are worth around Rs. 250 million whilst in FY2014 turnover amounted to Rs. 480 million and net profit was Rs. 25 million.
A spokesman for NetCom said projected turnover and profit for FY 2015 is Rs.700 million and Rs. 40 million respectively.