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ABB board nods proposal to divest Turbocharger Business on slump sale basis for Rs310cr, to complete by Feb-2022 end; Stock jumps 5%

The Turbocharger Business of the Company is part of the Company’s Process Automation segment and involves manufacturing and service of turbochargers.

December 22, 2021 1:28 IST | India Infoline News Service
ABB India has received board of directors approval for the proposal to divest its Turbocharger Business as a going concern. Further, the board has approved the incorporation of a wholly-owned subsidiary.

In a board meeting on Tuesday, ABB received approval for the incorporation of a wholly-owned subsidiary. The new entity to be incorporated will be a subsidiary of the Company, which is a subsidiary of the promoter, ABB Asea Brown Boveri Ltd. However, the Company’s promoters will not hold any shares in the subsidiary. The Company will own 100% of the share capital of the wholly-owned subsidiary.

Further, to divest the company's Turbocharger Business as a going concern, on a slump sale basis to its wholly-owned subsidiary. Earlier, in June this year, the company had announced its plan to divest turbocharger business in the Process Automation business segment.

The Turbocharger Business of the Company is part of the Company’s Process Automation segment and involves manufacturing and service of turbochargers.

The board approved the divestment for consideration of Rs310cr.  The Slump Sale will be consummated by end of February 2022. The buyer will be a wholly-owned subsidiary of the Company, which is a subsidiary of the promoter viz., ABB Asea Brown Bover.

At around 1.25 pm, ABB was trading at Rs2307.70  per piece up by Rs103.60 or 4.7% on Sensex. The stock has touched an intraday high of Rs2330.95 per piece. 

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