GE T&D India Ltd board has approved a proposal to sell its Global Engineering Operations Division (GEOD Business) to GE India Industrial Private Ltd (GEIIPL) via a slump sale for a cash consideration of Rs 140.6 crore.
"The company has, in the meeting of its board of directors that was held on January 24, 2022, agreed to sell its Global Engineering Operations Division (India for Global) (GEOD Business) to GE India Industrial Private Ltd (GEIIPL) (a related party) together with the assets and manpower comprised therein along with its corresponding liabilities by way of a slump sale on an "as is where is" basis," a BSE filing said.
The GEIIPL (the buyer) is a company incorporated under the Companies Act, 1956, and it is a part of the General Electric Group.
As per the filing, the lump sum consideration for sale is Rs 140.6 crore and the Business Transfer Agreement is expected to be executed by January 31, 2022.
The expected date of completion of sale is March 31, 2022, subject to satisfaction of identified conditions precedents and approval of shareholders of the Company for the related party transaction with GEIIPL.
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The GEOD Business provides engineering services (including engineering support for tendering, project support and product design) to the global affiliates of GE Grid Solutions. The said business contributes to less than 2.2 per cent of the total revenue of the Company and is non-core to the Company's business.
GE T&D India had turnover of Rs 3,452.37 crore during the financial year ended March 31, 2021 and net worth of Rs 1,122.68 crore as at March 31, 2021.
The GEOD Business had a turnover of Rs 72.57 crore out of total turnover of Rs 3452.37 crore of the Company during the financial year ended March 31, 2021 which is less than 2.2 per cent of the total turnover.
The net book value of the fixed assets of the GEOD Business was Rs 10.31 crore as at March 31, 2021, which is less than one per cent of the net worth of the Company of Rs. 1122.68 crore as on March 31, 2021.
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