Shares of Crompton Greaves dropped nearly 8 percent intraday Friday after its promoter Avantha Holdings decided to sell entire stake in demerged consumer electricals business of the company.
Shares of Crompton Greaves dropped nearly 8 percent intraday Friday after its promoter Avantha Holdings decided to sell entire stake in demerged consumer electricals business of the company.
Global private equity firm Advent International and Avantha Holdings have signed a share purchase agreement whereby Advent will lead the acquisition of 34.37 percent of CG's consumer products business Crompton Greaves Consumer Electricals (CGCEL).
Singapore-based Temasek will be an independent co-investor alongside Advent in CGCEL.
The acquisition value is approximately Rs 2,000 crore. The transaction values CGCEL at an enterprise value of Rs 6,600 crore (USD 1.07 billion). The transaction is subject to receipt of all statutory and other approvals, including the successful demerger of CGCEL from CG and approval from the Reserve Bank of India and Competition Commission of India.
CGCEL will be demerged from CG into a standalone company and will consequently be listed on the National Stock Exchange of India and Bombay Stock Exchange. Thereafter, global private equity firm Advent and Temasek will make an open offer for additional shares of CGCEL in compliance with takeover regulations.
At 11:28 hours IST, the scrip of Crompton Greaves was quoting at Rs 164.20, down Rs 4.30, or 2.55 percent on the BSE.
Posted by Sunil Shankar Matkar
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