The Hindu Business Line : Exim Bank to lend $5 m to Ucal Fuel arm

The bank has been an active participant right through the takeover of Amtec by Ucal. It lent Rs 77 crore to Ucal for the purpose of the buy-out. It also picked up a 20 per cent equity stake in Amtec for $4.4 million (Rs 20 crore).

In all, Exim Bank has an exposure of Rs 120 crore to Ucal-Amtec combine, one of the larger acquisition fundings done by the bank.

Amtec Precision, which was taken over by Ucal Fuel Systems last year, produces machined and injection-moulded products to OEMs such as Siemens and Cummins. Amtec was making losses, but is now believed to be on the turnaround path.

Exim Bank, a pioneer in overseas acquisition funding, has funded over a hundred takeovers, including Tata Tea's 275-million takeover of Tetley of UK. The bank's exposure to Tetley takeover was 40 million. "More and more Indian companies are buying up companies around the world," said Mr K. Muthukumaran, General Manager, Exim Bank. "With so much of experience behind us, we are now offering advisory services to companies on how to go about acquisitions," he told Business Line on Friday.

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