 "Crompton Greaves signs share purchase pact with First Reserve")
Avantha group firm Crompton Greaves on Monday said it has signed a share purchase agreement with First Reserve International, a US private equity fund for an enterprise value of 115 million euros (about Rs 851 crore).
"The company and its subsidiaries CG International BV and CG International Holdings Singapore PTE Ltd have signed a share purchase agreement with Pauwels Spaco Ltd — an SPV (special purpose vehicle) of First Reserve for the acquisition," Crompton Greaves said in a regulatory filing.
It further said: "The SPV envisages completion of the transaction by October 31, 2016, subject to shareholder and regulatory approvals."
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In March, Crompton Greaves said it will sell its transmission and distribution businesses outside India to First Reserve International, a US private equity fund, for euro 115 million (approximately Rs 851 crore) after accepting a revised binding letter of offer for acquisition of aforesaid business by First Reserve International Ltd.
Last May, Crompton Greaves had received non-binding proposals from interested parties to acquire the European, North American and Indonesian activities of power division of the company.
Crompton Greaves said that the transaction is subject to regulatory approval and signing of definitive share purchase agreement.
In order to sell other international B2B businesses, the company has appointed investment bankers who have initiated the process of identifying potential investors and buyers for the assets and businesses.
"The above strategic actions are intended to meet the company's objective of debt reduction and on focusing on its core operations in India which provide a significant growth opportunity," it added.
The stock of the company was trading at Rs 59.40 apiece, up 1.28% from the previous close on BSE.
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