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| Andrew yule completes phoenix yule divestment |
| BS Reporter / Kolkata Dec 11, 2009, 00:32 IST |
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Public sector firm Andrew Yule (AYCL) on Thursday announced the completion of its exit from Phoenix Yule, its joint venture (JV) with Germany's Phoenix AG, having transferred its 26 per cent holding to its former partner for Rs 62.82 crore at a price of Rs 49.50 per share.
Moreover, AYCL will also receive Rs 3.70 crore from Phoenix AG, part of the Continental Contitech Group, for trademark usage and a non-compete agreement. In 1999, the entire belting division of AYCL, of which 74 per cent was subsequently sold to Phoenix AG, had been valued at Rs 45.94 crore.
The disinvestment of Phoenix Yule was part of the Board for Industrial and Financial Reconstruction (BIFR)- approved rehabilitation package for AYCL. In October this year, the government had given its sanction for the sale.
“As per the JV agreement, if a partner wanted to come out, the first right of refusal had to be offered to the other. After a long partnership, we are handing over our share purchase agreement and finalisation of transaction of Phoenix Yule disinvestment,” AYCL Chairman and Managing Director Kallol Dutta said.
With complete control over Phoenix Yule, its German parent is looking for further investment in India. “This deal is representative of our firm interest in India. This is a very good market for us with opportunities for further growth. Additional investments could happen in the future,” Continental Contitech Head of Product (Segment Mining World) Claus-Peter Spille said.
Phoenix Yule, which primarily manufactures textile and steel cord conveyor belts at its Kalyani facility, made a profit of Rs 31.94 crore in the last fiscal. In the past 10 years, Phoenix AG has invested over Rs 100 crore in its Indian venture.
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