Crompton Greaves appoints bankers for sale of assets

0

Mumbai: Crompton Greaves Ltd on Monday said it had agreed to sell its power businesses in Europe, North America and Indonesia to a unit of US private equity fund First Reserve International Ltd after accepting a revised offer of €115 million in March, and also appointed investment bankers to find potential buyers for its other assets.

The electric equipment maker had on 9 March said it was looking to dispose of its international B2B (business-to-business) automation businesses to reduce debt and focus on its home market in India.

Investment bankers have now initiated “the process of identifying potential investors or buyers for these assets and businesses”, Crompton Greaves said in a BSE filing on Monday.

First Reserve will acquire Crompton Greaves’ power business in Europe, North America and Indonesia for an enterprise value of €115 million, the company said in the March filing.

The Avantha Group company said on Monday that it had—along with subsidiaries CG International BV and CG International Holdings Singapore PTE Ltd—entered into a share purchase agreement with Pauwels Spaco Ltd, a special purpose vehicle of First Reserve, for the sale.

The sale will enable the company to focus on its fast growing Indian businesses, Crompton Greaves said.

The company had consolidated debt of Rs.2,190 crore as of 30 September.