Material handling equipment maker TIL Ltd today said its board has approved to sell Caterpillar dealership business for a minimum of Rs 350 crore.
The company's board has resolved to transfer the Caterpillar dealership business of the company as a going concern for a net consideration of not less than Rs 350 crore, TIL Ltd said in a regulatory filing.
"Goodearth Minetech Pvt Ltd, New Delhi has evinced interest to acquire the Caterpillar business as a going concern on the consideration mentioned above," it said.
TIL is the exclusive dealer for Caterpillar products in North and East India, Bhutan and Nepal.
The company said the transfer of ownership of the Caterpillar business will be achieved by selling shares of Tractors India Pvt Ltd, Tractors Nepal Pvt Ltd and by sale of specified assets and liabilities pertaining to Caterpillar business, it added.
TIL Overseas Pte Ltd shall continue to be a subsidiary of the company, it added.
TIL's audit committee has approved the proposed transaction with its recommendations but it will be subject to regulatory and shareholders approvals.
Shares of TIL today ended at Rs 350.70 apiece on the BSE, down 13 per cent from previous close.
