Consumer electricals firm Havells India today announced divestment of majority stake in European lightings operations Sylvania to Shanghai Feilo Acoustics for nearly 148.8 million euros (about Rs 1,090 crore).
In 2007, Havells had acquired Frankfurt-headquartered Sylvania for USD 300 million through its Dutch subsidiary Havells Netherlands.
The company will be selling 80 per cent each in Havells Malta BV and Havells Exim Ltd, Hong Kong.
"Havells India Ltd has received an intimation from its wholly-owned subsidiary, Havells Holdings Ltd, that it proposes to enter into definitive agreement with Shanghai Feilo Acoustics Co Ltd to divest 80 per cent stake in Havells Sylvania Malta BV, subject to shareholders and related approvals," the company said in regulatory filing.
Havells India also proposed to divest 80 per cent stake in its wholly-owned subsidiary, Havells Exim Ltd, Hong Kong.
Havells said that it will continue to own 100 per cent stake in Havells Sylvania's subsidiaries in US, Brazil, Chile and Thailand.
It further said: "Havells Holding Ltd, Isle of Man would continue to hold remaining with exit options in next 3-5 years."
"The combined equity value for 100 per cent stake for both companies is Euro 186 million," the company added.
Havells said: "The proposed combination with Feilo would bring much requisite technology and scale to Sylvania. It would be in greater interest of Sylvania, its employees, customers and vendors. Sylvania would be well positioned to capitalise upon emerging opportunities in disruptive global lighting industry."
Havells Holding Director Anil Rai Gupta said: "Havells Group has successfully contributed to develop Sylvania into an entrepreneurial organisation with a global objective and local execution empowerment... We are convinced that the current alliance with Feilo has requisite attributes to gain immensely from emerging trends in disruptive lighting industry."
The company said the transaction is subject to shareholders' approval and is expected to close by February 2016.
Shares of Havells were trading at Rs 304.50, up 7.75 per cent, from previous close on BSE.
