Dixon to buy majority stake in Transsion manufacturing unit
Dixon Technologies has said it plans to buy a majority stake in Ismartu India, a manufacturing unit of Chinese phone maker Transsion Holdings, to expand its business.
Dixon will initially acquire 50.10% stake for Rs 238.36 crore in an all-cash deal while additional acquisition will be done in FY27 for an aggregate consideration, which shall be decided on the basis of a valuation of 20 times of profit after tax of Ismartu for FY26, Dixon said in a regulatory filing late Monday.
Dixon added that upon successful acquisition of the second tranche of shares, it will hold an additional stake between 1.60% to 5.90% in Ismartu India.
Sources say that ultimately Dixon plans to acquire around 55% stake in Ismartu, which manufactures features and smartphones for brands like Itel, Infinix and Tecno at its three factories in Noida. ET was the first to report on the proposed deal in its April 3 edition.
As per the filing, Dixon has entered into a share purchase agreement to acquire 50.10% stake in the first tranche from Ismartu Singapore, Transsion Technology Ltd, 5A advisors LLP.
“Tranche I shares will be acquired by the company for an aggregate initial consideration amount of Rs 238.36 crore, subject to pre-closing and post-closing adjustments in accordance with the terms of the share purchase agreement,” it said.
For FY23, Ismartu India had reported a turnover of Rs 6,235 crore.
“…this is a significant development. It's an opportunity for the Indian contract manufacturers to partner with the technology giants from any
