CG (Crompton Greaves) of the Avantha Group has announced the divestment of its entire 50 per cent shareholding in CG Lucy Switchgear , its switchgear arm to its joint venture partner W Lucy & Co., the U.K., for Rs.40 crore.
“CG will divest its entire investment of six lakh equity shares of Rs.10 each made in 1994 (aggregating to Rs.60 lakh) in the share capital of CG Lucy Switchgear to W Lucy & Co for a consideration of Euro 5.5 million (Rs.40.2 crore),” CG said in a statement.
CG Lucy Switchgear factory is situated in Nasik and the company manufactures ring main units (RMUs) for the India market.
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Post divestment, CG will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG-Lucy. The deal forms part of CG’s strategy to focus on its B2B activity in the Power HV sector, the company said.