Avantha to sell stakes in Crompton Greaves Consumer Electricals for Rs 2000 cr

Avantha Holdings Limited has sold off its stake of 34% in Crompton Greaves Consumer Electricals Limited (the wholly-owned subsidairy of Crompton Greaves) to private equity firms Advent International and Temasek for Rs 2000 crore. The consumer products business of CG manufactures fans and lighting appliances.
 
Avantha Holdings said the transaction values the consumer business division at an enterprise value of Rs 6,600 crore, seventeen times of FY14 Ebidta.
 
Advent and Temasek will acquire ownership in the consumer division subsidiary following the demerger of the consumer products business from CG and the listing of the company on the BSE and NSE. The transaction is expected to be completed in the first quarter of 2016.
 
Crompton Greaves (CG) had notified the exchange in March regarding the demerger of its consumer business into separate subsidiary, whereby all of CG’s shareholders will receive shares of new company and share structure will mirror the shareholding of CG.