(SINGAPORE) Singapore-based Unza Holdings - which had earlier toyed with the idea of listing here - has been bought out by one of India's largest software exporters in an all-cash deal valued at some US$246.4 million.

In a statement yesterday, the company behind toiletries and personal care products like Eversoft, Enchanteur and Romano, said that Wipro Ltd was acquiring the entire share capital of Unza at a price of 70 US cents per share.

Wipro is India's third-largest software exporter, but also maintains interests in such consumer products as detergent, lighting and diapers. Listed in New York and Mumbai, it has a market capitalisation of over US$20 billion and counts giants like Cisco and Nortel among its key clients.

The acquisition will almost double revenue for Wipro's consumer care and lighting unit, which also makes soaps. The unit posted a 36 per cent increase in sales to 8.18 billion rupees (S$308 million) in the year ended March 31.

The parent company, controlled by billionaire chairman Azim Premji, had sales of 150 billion rupees last year.

'Unza has an excellent product range and a large portfolio of strong brands catering to Asian consumers,' said Vineet Agrawal, president of Wipro's consumer care unit. 'They have been able to consistently grow faster than the market in the geographies they are present in.'

Unza's portfolio includes such brands as the Enchanteur and Romano range of toiletries and the Safi range of skin-care products. Unza MD Gavin Welman said that Wipro's takeover would help the company gain 'access to resources required to fuel our ambition for further growth and unlock the true potential of our brands'.

Revenue from the purchase will start flowing in the current quarter (July-September), and there will be no margin dilution because the operating margin for Wipro's consumer care and lighting business is 12.5 per cent, while that of Unza is 12 per cent.

The transaction was funded totally through Wipro's internal accounts.

Wipro also said there will not be any change in Unza's management, and that it will continue to operate the way it is. 'We do not want to change any branding structure.'

Unza, one of the largest makers of personal care products focused in Southeast Asia, had revenues of about $258 million for the year to April 30. Its revenues grew 14 per cent in US dollar terms, well ahead of market growth rates in the region, Wipro said.

Unza makes personal care products such as Safi, Eversoft and Romano, and detergent brands Vigor and Maxkleen. It has 48 brands with over 4,000 staff, and has manufacturing plants in Malaysia, Vietnam, China and Indonesia.

When asked about the specific markets Unza will be looking at, it said it will focus on Asia, adding that the greater Indian subcontinental grouping shows good potential for growth.

Last year, Unza had withdrawn its initial public offer of 109.7 million shares, citing the 'potential impact' on earnings of a purchase it made of bonds issued by a subsidiary. The company had hoped to raise $34.3 million from that offer.

In 2005, too, Unza had postponed its listing plans, after lodging a preliminary prospectus, citing weak market conditions. The firm said it was looking to attract mainly institutional investors, but said that fund managers here had indicated that they had limited funds then.

They were thus either in favour of taking a 'decent stake' in companies smaller than Unza, or buying small stakes in large companies, and Unza's mid-sized offering thus proved to be disadvantageous, said Mr Welman.

For the latest transaction, Wipro has signed definite agreements with Standard Chartered Private Equity, Actis-UHPL Ltd, Durrington Group Ltd, certain individuals and Unza to acquire the Singapore firm.

Standard Chartered Plc and Actis Capital LLP held 58.6 per cent stake in Unza. The management of Unza had a 35.4 per cent stake, while the rest was held by former employees.

The purchase is expected to be completed on Aug 1.