Amber Enterprises' material subsidiary, IL JIN Electronics, has signed a share swap agreement to acquire the remaining 40% stake in Power-One Micro Systems. This deal will make Power-One a wholly-owned subsidiary of IL JIN and Amber. The transaction uses a cash-efficient share swap, with IL JIN issuing 1,76,000 CCPS to existing shareholders to consolidate its control over the solar inverter and EV charger manufacturer.
Amber Enterprises Subsidiary to Acquire Remaining 40% Stake in Power-One Micro
- Transaction: Acquisition of remaining 40% equity stake in Power-One Micro Systems Private Limited.
- Consideration: Issuance of 1,76,000 CCPS A3 (non-cash) by IL JIN Electronics.
Reader Takeaway: Amber consolidates its power electronics portfolio through a cash-neutral share swap, simplifying its corporate ownership structure.
What just happened
IL JIN Electronics (India) Limited, a material subsidiary of Amber Enterprises, has signed a share swap agreement to acquire the remaining 40% stake in Power-One Micro Systems. IL JIN currently holds a 60% stake in the target company. Upon completion of this transaction, which is expected within 10 business days, Power-One will become a wholly-owned subsidiary of IL JIN.
Why this matters
The deal effectively consolidates Amber’s control over its electronics and energy storage segments. By moving to 100% ownership, the company simplifies its reporting structure and gains total operational authority over Power-One’s manufacturing capabilities, which include solar inverters, UPS systems, battery energy storage systems (BESS), and EV chargers.
Strategic Rationale
The company is utilizing a share swap mechanism to execute the acquisition without cash outflow. IL JIN will issue 1,76,000 Compulsorily Convertible Preference Shares (CCPS A3) with a face value of Rs 10 each, issued at a premium price of Rs 10,000 per share. This approach allows the parent company to maintain liquidity while increasing its equity interest in a growing subsidiary.
Target Financial Performance
Power-One Micro Systems has shown consistent growth in turnover over the last three fiscal years:
- FY 2023-24: Rs 184.87 crore
- FY 2024-25: Rs 231.45 crore
- FY 2025-26: Rs 270.02 crore
Related Party Disclosure
The acquisition involves key personnel related to the group. The sellers include Mr. Ramanna Rajesh Mayasandra (MD of Power-One), Mrs. Doddabidere Honappa Veena, and Mr. Harsh Venkatesh. The company has certified that the transaction is conducted at arm’s length and requires no external regulatory or government approvals.