Consumer electricals firm Havells IndiaBSE 0.05 % would exit from the global market by selling remaining 20 percent stake in its European lighting business Sylvania to China’s Feilo Acoustics for 34.5 million euros (Rs 241.94 crore).
HavellsBSE 0.05 % Holding Ltd (HHL), a subsidiary of Havells, would transfer the remaining 20 per cent stake in Fielo Malta Ltd (earlier Havells Malta Ltd) to Shanghai-based Feilo Acoustics.
Besides, HHL, through its subsidiary Havells International Ltd, would transfer 100 per cent stake in Havells Sylvania Thailand Ltd to Felio for 1.6 million euro (Rs 11.21 crore).
However, it would receive net proceeds of 27.1 million euoro (around Rs 190 crore) as HHL would proceed for closure of its remaining international operations which is expected to incur around 9 million euro (around Rs 63 crore).
“The board gave its consent to the proposed transaction. The transaction is expected to close in the next 120 days. The company would receive net proceeds of 27.1 million euro from this agreement,” the company said in a regulatory filing.
It further added: “With this, Havells, through its subsidiaries, would exit its entire portfolio of overseas business.”
In December 2015, Havells had announced divestment of 80 per cent stake in European lightings operations Sylvania to Feilo Acoustics for nearly 148.8 million euro (about Rs 1,090 crore).
In 2007, Havells had acquired Frankfurt–headquartered Sylvania for USD 300 million through its Dutch subsidiary Havells Netherlands.
Havells board also approved termination of Jiangsu Havells Sylvania Lighting co Ltd, a 50:50 JV of Havells India LtdBSE 0.05 % and Shanghai Yaming Lighting Co Ltd and liquidation of its business.
“It is expected that the liquidation would realise 2.3 million euro for 50 per cent stake held by Havells. The liquidation process could require up to 9 months for execution,” it added.
Source: Economic Times