Crompton Greaves to sell transmission, distribution biz to US PE fund; shares up nearly 6% intraday
The sale will enable the company to reduce debt and focus on its faster growing Indian business, the company said in a statement to BSE.
Avantha Group company Crompton Greaves will sell its transmission and distribution (T&D) business outside India to First Reserve International, a US private equity (PE) fund, for an enterprise value of euro 115 million (approximately Rs 851 crore).
"The company has now received and accepted a revised binding letter of offer for acquisition of the aforesaid business by First Reserve International, a US private equity fund, for an enterprise value of euro 115 million," Crompton Greaves said in a BSE filing on Wednesday.
In May last year, Crompton Greaves had received non-binding proposals from interested parties to acquire European, North American and Indonesian activities of power division of the company.
Crompton Greaves said the transaction is subject to regulatory approval and signing of a definitive share purchase agreement.
It further said, "The sale will enable the company to reduce debt and focus on its faster growing Indian business. The company continues to actively examine its other international B2B businesses (business to business) with a view to monetising."
On Wednesday, at 1206 hours, the shares of Crompton Greaves were trading up 5.95% or Rs 8.30 at Rs 147.85 per scrip on the BSE.