Escorts to sell JV stake to partner for Rs 119 cr

Escorts has received approval from its board to divest the company's entire stake in Carraro India to its joint venture partner, Italy-based Carraro SpA for euro 20 million Euro (around Rs 119 crore).

At the meeting held today the board approved divesting the company's entire shareholding in Carraro India to Carraro SpA, Escorts informed the Bombay Stock Exchange.

An in-principle understanding has been reached between Escorts, a flagship of the Escorts group, and Carraro SpA for the deal, which is subject to signing and execution of the share purchase and supply agreements.

Carraro India is a joint venture between Italy's Carraro SpA and Escorts, in which the Italian firm holds a 51% stake and the remaining 49% stake is held by Escorts.