Andrew Yule gets nod to sell Phoenix stake

NEW DELHI: The Union Cabinet on Thursday approved divestment of the entire 26% stake held by state-owned engineering firm Andrew Yule & Co in Phoenix Yule for Rs 62.82 crore to Continental ContiTech. Phoenix Yule, a joint venture (JV) between Andrew Yule & Co (AYCL) and Germany���s Phoenix Aktiengesellschaft, is one of the largest manufacturers of conveyor belts in India. While AYCL held 26% stake in the JV, the rest is owned by the German partner.

The valuation of shares have been approved at a rate of Rs 49.50 per share for over 1.19 crore shares, minister for information and broadcasting Ambika Soni told reporters after the Cabinet meeting. ���Funds raised by way of disinvestment of AYCL shares in PYL will go towards repayment of a part of interest-free government of India loan of Rs 87.06 crore, which was extended to AYCL as a part of the restructuring package approved in 2007,��� the minister said.

AYCL has about 15,567 employees, and the revival of the company by the present disinvestment move will protect the jobs of these employees, a government release said.