Alstom India to sell transport business to Alstom Transport

NEW DELHI: Alstom India, an arm of French firm Alstom, has decided to sell the transport business to another group company Alstom Transport for Rs 176.90 crore.

Board of Directors of the company have approved the sale and transfer of its transportation system undertaking to Alstom Transport India, for a total consideration of not less than Rs 176.90 crore in cash on a 'slump sale' basis.

The deal is a on a slump sale basis, for a lump sum consideration without values being assigned to individual assets and liabilities.

"Alstom India's Board of Directors have approved the sale and transfer of its transportation system undertaking to a group company, Alstom Transport India for a total consideration not less than Rs 176.90 crore in cash," the company said in a recent regulatory filing.

Alstom India said the sale of the transport segment of the company shall be is considered as discounting operations.

The Board will take appropriate decision regarding the extent and mode of utilisation of cash, including for distribution to the shareholders of Alstom Transport and general corporate purposes.

Alstom India reported net loss at Rs 7.58 crore for the third quarter ended December 31, 2013. It had recorded net loss of Rs 14.59 crore in the corresponding quarter of the previous financial year.

The company's revenues from its transport business remained unchanged at Rs 4.69 crore during the period.