GE T&D India on Saturday said it has agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial Private Ltd for a consideration of Rs 87.3 crore. “Subject to approval of shareholders, the company has agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial Private Ltd together with the assets and manpower comprised therein along with its corresponding liabilities on slump sale basis on an ‘as is where is’ basis,” a BSE filing said,
The activities of the said business were to provide engineering and product and project design services to global affiliates of GE Grid Solutions and hence non-core to the Company’s business, it added.
The GE T&D India Ltd will continue to have an internal team to support such activities of its business.
The company also informed that it would get Rs 87.3 crore on completion of sale of the business.
The expected date of completion of sale is at the end of day on March 31, 2021 subject to satisfaction of identified conditions precedents and approval of shareholders for related party transaction.
The business transfer agreement is expected to be executed by January 29, 2021.
The Global Engineering Operations Division (India for Global) had turnover of Rs 85.9 crore out of total turnover of Rs 3,158.7 crore of the company during the financial year ended March 31, 2020 which is less than 3 per cent of the total turnover.
The net book value of fixed assets of division was Rs 13 crore as on March 31, 2020 which is less than 2 per cent of the net worth of the company. The company has net worth of Rs 1,051.5 crore as on March 31, 2020.
GE India Industrial Private Limited ( Buyer) had turnover of Rs 4,042.7 crore during financial year ended March 31, 2020 and net worth of Rs 4,747.8 crore as on March 31, 2020.
GE India Industrial Pvt Ltd is in the business related to aviation, renewable energy, gas power, digital energy, propellers, other electrical equipments, research & development activity in material science, process technology, engineering etc.
GE T&D India Limited is engaged in the business of products, projects and systems for electricity transmission and related activities.
Global Engineering Operations Division was non-core business activity for the company and the sale would help management to focus on its core business activities besides realising cash from sale.
Source: Economic Times