Redington’s Step-Down Subsidiary Set to Complete Paynet Divestment

Redington Limited has announced a significant development regarding its step-down subsidiary, Arena Bilgisayar Sanayi Ve Ticaret A.S (“Arena”), which is listed in Istanbul, Turkey. The company has now received the necessary regulatory approvals to proceed with the transfer of its wholly-owned subsidiary, Paynet Ödeme Hizmetler A.Ş (“Paynet”), to Iyzi Payment and Electronic Money Services Inc.

The move comes after Redington had initially disclosed its intent to divest Paynet on May 7, 2024. The latest update confirms that both the Turkish Competition Authority and the Central Bank of the Republic of Turkey have given their approval for the transaction. 

Redington’s share price was trading marginally higher by 0.20% as of 11:21 AM on February 7, 2025.

Transaction Progress and Next Steps

With regulatory clearances now in place, the final share transfer and sale process will be completed following the fulfilment of the conditions outlined in the definitive agreement signed on May 6, 2024. This agreement sets the framework for the completion of the transaction, ensuring compliance with all legal and procedural requirements.

Upon the successful conclusion of the transfer, Redington will provide further updates as per regulatory obligations.

Strategic Implications

The divestment of Paynet aligns with Redington’s broader corporate strategy, possibly aimed at streamlining its portfolio and focusing on its core operations. While the company has not explicitly disclosed the reasons behind the divestment, such moves are often driven by strategic realignment or a shift in market priorities.

With the transaction nearing completion, stakeholders will be watching closely for Redington’s next steps, particularly in how the proceeds or resources freed up from this sale will be redeployed within the organisation.

Financial Performance 

Redington reported an 18% rise in quarterly profit, driven by consistent demand for computers and mobile phones—its largest business segments.

The growing adoption of AI-powered computers in corporate and educational sectors, along with new smartphone launches, has helped manufacturers and distributors navigate inflationary pressures and fluctuating demand.

Redington, a key distributor for Apple and Samsung, recorded a profit of ₹400 crore for the October–December quarter, up from ₹341 crore in the same period last year. Revenue from operations increased nearly 14% to ₹26,716 crore, supported by a 9% growth in its mobile phone business and a 6% rise in its consumer and commercial computer segment.

Additionally, the company’s technology solutions division saw a 28% increase in revenue, driven by higher software spending.

Redington has been expanding into new markets and strengthening its cloud services division to diversify beyond electronics distribution, which remains its primary revenue driver

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