Areva T&D India, a power transmission and distribution company promoted by French firm Alstom, today said it has demerged its distribution business into a new company, Smartgrid Automation Distribution and Switchgear Limited.
"Areva T&D India Ltd's promoters, Alstom Sextant 5 SAS, has made an open offer to the public shareholders of the company, stating that the transmission activities (high voltage systems, equipment, power electronics and automation) will be separated from the distribution activities (medium voltage systems, equipment and related automation)," an official statement said.
The board of directors of the company gave its approval to demerge its distribution activities into a wholly owned subsidiary of the company, Smartgrid Automation Distribution and Switchgear Limited.
The scheme contains a detailed formal plan for the separation of operations, which ensures continuity of service and accounts inter alia for identified locations, major assets, rights and interests, liabilities and employees concerned with medium voltage activities.
Under the scheme, AREVA T&D India Limited shareholders will remain shareholders of AREVA T&D India Limited and will be issued new shares in the new company, Smartgrid Automation Distribution and Switchgear Limited.
Shares of Areva T&D were trading at Rs 265.90, up 1.80% on the Bombay Stock Exchange.
