Ashok Leyland's UAE associate buys 49% interest in Avia

The sale, on March 29, was part of restructuring of subsidiaries, said Ashok Leyland

Ashok Leyland (UAE) LLC (ALUAE) has bought 49 per cent equity in Avia Ashok Leyland Motors s.r.o, a Czech Republic subsidiary, as part of the latter selling its non-core assets.

According to a clarification provided by the company to Bombay Stock Exchange, “the buyer is Ashok Leyland (UAE) LLC (ALUAE), a company incorporated under the laws of Ras Al Khaimah, United Arab Emirates, in which Ashok Leyland holds 49 per cent of the equity.”

It further said the UAE-based firm was an associate company of the Ashok Leyland, and the transaction was done as part of restructuring exercise of the company’s subsidiaries.

Avia, which had a turnover of Rs 6.12 crore in the financial year 2014 (December), had a net worth of Rs 90.35 crore. The consideration of sales was $10.97 million received towards transfer of the whole shares of Ashok Leyland in Avia and repayment of loan with interest accrued, it said.

The statement also added it had also sold Ashok Leyland Wind Energy Ltd for a consideration of Rs 20.08 crore for sale of 145,74,250 shares, which comprises 48.5 per cent of share capital of the company. The consideration also included Rs 93 crore towards the sale of windmill assets by Ashok Leyland, as part of Ashok Leyland's strategy to sell its non-core assets, it added.