The Cabinet on Thursday gave its approval to offloading 26 per cent equity held by Andrew Yule & Company in Phoenix Yule to Continental Conti Tech for Rs 62.82 crore, including an additional compensation of Rs 3.69 crore.

Phoenix Yule is a joint venture between Phoenix Aktiengesellschaft of Germany and Kolkata-based public sector undertaking Andrew Yule & Company. The Cabinet approved the valuation of shares at Rs 49.50 a share for 1.19 crore shares of Phoenix Yule.

Click here for Cloud Computing

Also Read   Related Stories News Now - Andrew Yule exits JV; sells 26% in Phoenix Yule - Andrew Yule exits JV; sells 26% in Phoenix Yule - Andrew Yule rationalises product-mix for exports - Andrew Yule jumps on Tide Water divestment plan - Coal India opts out of DPSC race

Also Read   Related Stories News Now - Wall Street opens flat as data offsets Moody's warning - Thomas Cook India Q4 net jumps three times - Govt plans to make 30% sourcing from MSEs mandatory - Explain ways to cover govt loss on 3G roaming: TDSAT to telcos - Magma Fincorp plans to start gold finance biz in H1 of FY13 More

Funds raised through the disinvestment of Andrew Yule & Company’s share in Phoenix Yule will go towards the repayment of a part of the interest-free loan of Rs 87.06 crore provided by the government in March 2008. The loan was extended to Andrew Yule & Company as part of its restructuring package.

The belting division of Andrew Yule & Company was spun off and a joint venture firm with Phoenix Aktiengesellschaft, having 74 per cent equity, and Andrew Yule & Company, having 26 per cent equity, was formed in November 1998.

Phoenix Yule is one of the largest manufacturer of conveyor belts in India. On January 16, 2007 Phoenix Aktiengesellschaft had merged with Conti Tech AG, a subsidiary of Continental AG.

Meanwhile, the Cabinet Committee on Infrastructure gave its approval to the government’s funding to the tune of Rs 827.85 crore for the development of the Commonwealth Games Village (other than residential zone), the competition venues at Yamuna and Siri Fort Sports complexes; and for upgrade/refurbishing of existing sports facilities at Yamuna, Siri fort and Saket Sports Complexes for training facilities.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Wall Street opens flat as data offsets Moody's warning - Thomas Cook India Q4 net jumps three times - Govt plans to make 30% sourcing from MSEs mandatory - Explain ways to cover govt loss on 3G roaming: TDSAT to telcos - Magma Fincorp plans to start gold finance biz in H1 of FY13

Tags : Phoenix Yule | Continental Conti Tech | Phoenix Aktiengesellschaft | Andrew Yule |   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Medium-sized businesses are the engines of a smarter planet. -  We live for our family. have you secured them? -  Office 365 for professionals and small businesses. -  Earn fuel worth Rs.2400 with Citi -  India's No. 1 Property Site. Click here to know more.. -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Get 5% cashback on telephone bills with Citi -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...