Havells sells Sylvania stake for Rs 1,340 crore

Havells plans to complete the sale of 80% stake in both units by next February

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Havells India announced today that it has sold 80% stake in Sylvania Malta, and Havells Exim Hong Kong to Shanghai Feilo Acoustics for Rs 1,340 crore.  Havells had invested Rs 980 crore in both the subsidiaries.
 

In a filing, the company said it plans to complete the sale of 80% stake in both units by next February. The remaining 20% in Malta to be divested in the next 5 years and rest 20% in Exim unit to be sold in 9 months from closing the first sale, the company announced in a statement.   
 

Havells shares were  up 5.1% on the BSE at Rs 295 a share.
 

Feilo is a leading listed company with key shareholding held by Inesa Limited, a government of Shanghai unit.
 

The statement said the proposed combination with Feilo would bring much requisite technology and scale to Sylvania.  It would be in greater interest of Sylvania, its employees, customers and vendors.  Sylvania would be well positioned to capitalize upon emerging opportunities in disruptive global lighting industry. 

“Havells Group has successfully contributed to develop Sylvania into an entrepreneurial organization with a global objective and local execution empowerment. Havells is proud of its management team, employees and workers who have enthusiastically participated in development of a unified objective of being a healthy, respected and profitable Sylvania,” said Anil Rai Gupta, Director of Havells Holding said.
 

“Our teams are the key assets apart from brand and distribution network. Feilo is keen to preserve the successful entrepreneurial fabric of Sylvania family. We are convinced that the current alliance with Feilo has requisite attributes to gain immensely from emerging trends in disruptive lighting industry,” he said.

Sylvania is a leading lighting products company with operations in 48 countries. The brand has a legacy of more than 100 years and its global revenues are in the range of Euro 440 million.