CG power executes agreement for sale of its Hungary subsidiary
India Infoline News Service | Mumbai | February 12, 2018 18:15 IST
CG Power and Industrial Solutions executed business transfer agreement and share sale and purchase agreement for its overseas step-down subsidiary - CG Electric Systems Hungary Zrt. The company had entered into a deal (excluding the switchgear business) for an enterprise value of Euro38mn with Ganz Villamossagi Zrt and Alester Holdings Ltd. The subsidiary had sales of Euro70.8mn and loss of Euro11.6mn in FY17. The closing of the sale is expected to be on or before March 31,2018.
The company has stated that the sale is part of its divestment plan to reduce debt and to focus on core operations and core market in India.