Dixon Technologies subsidiary enters into Rs 133 crore MOU with KHY Electronic India for asset acquisition

Dixon Technologies (India) Limited announced that its subsidiary, IsmartU India Private Limited (IIPL), has signed a Binding Memorandum of Understanding (MOU) with KHY Electronic India Private Limited (KHY) on January 18, 2025. The MOU is aimed at enhancing IIPL’s manufacturing capacity through the acquisition of assets from KHY.

Key details of the agreement:

1. Purpose: To achieve capacity enhancement of IIPL’s manufacturing operations.
2. Size of agreement: The acquisition will involve land, building, machinery, and other tangible assets for a consideration of up to ₹133 crore, excluding applicable taxes. Adjustments may be made based on due diligence and the completion of conditions precedent.
3. Significant terms: The transaction is subject to the signing of definitive agreements and completion of necessary conditions, as outlined in the MOU.
4. Relationship: The transaction is not a related party transaction, and no shareholding relationship exists between the parties.

The agreement is expected to play a significant role in Dixon’s strategy to bolster its subsidiary’s manufacturing capabilities.