Crompton Greaves today said it will sell its stake in CG Lucy Switchgear Ltd to its UK-based joint venture partner for over Rs 42 crore.
Company's Board of Directors have approved divestment of its 6,00,000 shares of Rs 10 each made in 1994 (aggregating to Rs 6 million) in the share capital of CG Lucy Switchgear Ltd to W Lucy & Co Ltd, UK for consideration of 5.5 million euro (Rs 402.60 million) and the execution of consequent definitive agreements, Crompton Greaves said in a BSE filing.
It further said: "The deal forms part of CG strategy to focus on its B-to-B activity in the power HV sector."
CG Lucy Switchgear Ltd is a 50-50 manufacturing joint venture between Crompton and W Lucy and Co Ltd, UK. Established in 1994, its factory is situated in Nasik where Ring Main Units (RMUs) are manufactured.
"Post divestment, Crompton Greaves Limited will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG-Lucy," the company added.
