New Delhi: Cyient Ltd on Thursday said it has signed an agreement to sell its entire 49% stake in Infotech Aerospace Services Inc. (IASI) to Pratt & Whitney, a unit of US-based United Technologies Corp.
Founded in 2003, Puerto Rico-based IASI is a joint venture between Cyient and Pratt & Whitney, and provides defence design, development and related services to United Technologies and its units.
Cyient will receive $1.8 million after additional dividend distribution of $9.1 million, the company said in a BSE filing. The deal would be earnings per share neutral, it added.
“We continue to embark on the journey towards realization of our ‘Design-Build-maintain’ strategy. To enable great focus on the strategy, we have been exiting the non-core businesses,” said Krishna Bodanapu, chief executive officer and managing director of Cyient, in a BSE filing.
“This divestment is a step in the right direction and will aid us in becoming more focused striding towards achieving our vision,” Boadanaopu said, adding that the company will continue to evaluate its business portfolio.
At 10.14am, shares of Cyient were trading 0.73% lower at Rs522.05, while the Sensex was up 125 points, or 0.39%, at 32,312.