The diversified state-run company Andrew Yule today said it completed disinvestment of its associate company Phoenix Yule by offloading 26 per cent to the German firm Phoenix.
Andrew Yule chairman and managing director Kallol Datta here said that "we are pleased to sign the pact (share purchase agreement) and complete the disinvestment process."
This divestment is part of the BIFR-mandated revival package Andrew Yule under which is required to spin off its electrical and engineering businesses into separate companies while retaining its tea business under its own banner.
As per the agreement, Andrew Yule would sell 26 per cent stake in Phoenix Yule to Phoenix at a consideration of around Rs 63 crore which was approved by the Cabinet in October.
Phoenix Yule manufactures conveyor belts, industrial fans, vee belts and other industrial products.
Datta also said a part of the proceeds would go to repaying the government debt.
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The BIFR-referred Andrew Yule operates in three segments--engineering, electrical goods and tea, and has subsidiaries like Hooghly Printing, Yule Engineering and Yule Electrical.
The Kolkata-based company was referred to the Board for Industrial & Financial Reconstruction in November 2002 after its networth was eroded in 2001-02 and posted its a turnaround after seven years last fiscal with gross sale of Rs 184.40 crore and a net profit of Rs 8.61 crore.