Voltas to buy out remaining stake in jt venture firms
Voltas Ltd, a Tata group company on Monday said that it will acquire remaining stake in Universal Comfort Products Ltd (UCPL) and Saudi Ensas Company Ltd (SECL) pursuant to which the companies will become its wholly-owned subsidiaries.
UCPL is a joint venture (JV) company between Voltas and Fedders International Air-conditioning Pvt Ltd (FIACPL), a subsidiary of US-based Fedders Corporation.
Fedders has agreed to divest its 50 per cent shareholding in UCPL for Rs 7.5 crore to Voltas, the air condition and cooling product making company said in a release to the BSE.
On completion of transfer of these shares, UCPL would cease to be a joint venture firm and become a wholly owned subsidiary of Voltas Ltd.
In another statement, Voltas said it would also acquire 51 per cent stake in Saudi Ensas Company Ltd (SECL), a joint venture between itself and a local company in Saudi Arabia. Voltas and its subsidiaries hold 49 per cent of the capital in SECL.
Upon conclusion of the acquisition, SECL would turn into a 100 per cent subsidiary of Voltas Ltd. Shares of the company were last trading at Rs 243.50, up 2.96 per cent on the BSE. – PTI
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