Crompton Greaves receive proposals to acquire assets
Thursday, March 10 2016 - 12:21 PM WIB
NSE-listed Crompton Greaves Limited (CG) announced on Wednesday it had received non-binding proposals from interested parties to acquire the European, North American and Indonesian activities of the power segment division of the company.
?In continuation to the above communication, the company had informed to the Stock Exchanges vide it's letter dated Feb. 4, 2016 that discussions with the potential buyer were on, to explore reaching an agreement on the outstanding issues to enable the Board to accept the offer,? the firm said.
The company further said it has now received and accepted a revised binding letter of offer for the acquisition of the aforesaid businesses by First Reserve International Limited, a US Private Equity Fund, for an Enterprise value of 115 million euros. The offer is subject to regulatory, shareholders approvals and signing of definitive share purchase agreement.
The sale will enable the company to reduce debt and focus on its faster growing Indian businesses. The company continues to actively examine its other international B2B businesses with a view to monetize these businesses to enhance shareholder value.
In Indonesia, the firm, through PT.CG Power Systems Indonesia operates a transformer manufacturing plant in Cileungsi, Bogor, from which it supplies various types of transformers to local and global markets.
Editing by Johannes Simbolon