Crompton Greaves rallies on sale of overseas businesses

The stock rallied 9% to Rs 152 on the BSE.

Crompton Greaves has rallied 9% to Rs 152 on the BSE after the company announced the sale of transmission & distribution (T&D) business outside India to First Reserve International, a US Private Equity Fund, for an enterprise value of Euro 115 million.

“The company has received and accepted binding letter of offer for the acquisition of the European, North American and Indonesian activities of the power segment division of the company by First Reserve International, a US Private Equity Fund, for an enterprise value of Euro 115 million,” Crompton Greaves said in a statement.

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The sale will enable the company to reduce debt and focus on its faster growing Indian businesses. The company continues to actively examine its other international B2B businesses with a view to monetize these businesses to enhance shareholder value, it added.

The company said the offer is subject to regulatory, shareholders approvals and signing of definitive share purchase agreement.

At 09:58 am, the stock was up 6% at Rs 148 on the BSE as compared to 0.68% decline in the S&P BSE Sensex. A combined 10.37 million shares changed hands on the counter on the BSE and NSE.