For an enterprise value of USD 37 million
CG Power & Industrial Solutions has accepted a binding offer of WEG S.A for acquisition of the Company's power business in USA comprised in the Company's step down overseas subsidiary, CG Power USA Inc. (PSUS), at an enterprise value of USD 37 million and in this regard CG Power Systems Belgium N.V., the Company's step down overseas subsidiary has executed a stock purchase agreement on 20 June 2017 with WEG Electric Corp for sale of its 100% stake in PSUS, comprising exclusively of the Company's power business at closing.The SPA is expected to close by 31 July 2017 upon which CG Power USA Inc. will cease to be an overseas subsidiary of the Company.
The deal is part of the Company's stated strategy of debt reduction and on focusing on its core operations and core market in India.
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