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| Andrew Yule exits JV; sells 26% in Phoenix Yule |
| Press Trust of India / New Delhi Oct 15, 2009, 14:42 IST |
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The government today approved selling of the entire 26 per cent stake held by state-owned engineering firm Andrew Yule & Co in Phoenix Yule for Rs 62.82 crore to Continental ContiTech.
Phoenix Yule is a joint venture between Andrew Yule & Co (AYCL) and Germany's Phoenix Aktiengesellschaft and is one of the largest manufacturers of conveyor belts in India. While AYCL held 26 per cent stake in the JV, the rest is owned by the German partner.
The valuation of shares have been approved at a rate of Rs 49.50 per share for over 1.19 crore shares, Information and Broadcasting Minister Ambika Soni told reporters here after the Cabinet meeting.
"Funds raised by way of disinvestment of AYCL shares in PYL will go towards repayment of a part of interest-free government of India loan of Rs 87.06 crore, which was extended to AYCL as a part of the restructuring package approved in 2007," Soni said.
The Rs 62.82 crore consideration also includes an additional compensation of Rs 3.69 crore, she added.
Continental ContiTech is a part of the German engineering and automotive group Continental.
The Phoenix Yule was formed on November 19, 1998.
To implement the decision of the Cabinet dated February 22, 2007, an Inter-Ministerial Group headed by Additional Secretary and Financial Advisor, DHI was constituted to initiate the disinvestment process of AYCL's entire stake in PYL.
Also, to recommend the valuation of share price of PYL as per the terms laid down in JV signed between AYCL and PHX.
Kolkata-based AYCL, a public sector undertaking under the Department of Heavy Industry, is engaged in manufacturing of industrial fans, tea processing machinery, industrial pollution control equipment and system and allied products.
As on March 31, 2008, AYCL had 15,754 regular employees.
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