 "Crompton Greaves to divest shares in CG-Lucy Switchgear")
Avantha Group Company Crompton Greaves (CG) today announced the divestment of its entire 50% shareholding in CG Lucy Switchgear Limited to W Lucy & Co Limited, UK. CG will divest its entire investment of 600,000 equity shares of Rs 10 each made in 1994 (aggregating to Rs 60 lakh) in the share Capital of CG Lucy Switchgear Limited (CG-Lucy) to W Lucy & Co Limited, UK for a consideration of Euro 5.5 million (Equivalent to Rs 40 crore) and the execution of consequent definitive agreements.
CG Lucy Switchgear Ltd is a 50-50 manufacturing joint venture between the Company and W Lucy and Co Limited, UK. Established in 1994, its factory is situated in Nasik (Maharashtra) and is a manufacturer for Ring Main Units (RMUs) for the India market.
Post divestment, CG will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG-Lucy. The deal forms part of CG's strategy to focus on its B2B activity in the Power HV sector.
Avantha Group Company CG's CEO & Managing Director Laurent Demortier said, "We believe that W Lucy is the best potential owner for ensuring a long term future for CG-Lucy. Combining the CG Lucy Indian operations and Lucy Electric business will allow CG-Lucy to focus on developing products specifically for the Indian market and expand its offering within the MV sector".