Crompton Greaves slips on divestment plans

NEW DELHI: Crompton Greaves Ltd slipped as much as 7.7 per cent in intraday trade on Friday, after the company said it proposes to divest its entire stake in consumer electricals unit for Rs 2000 crores to a special purpose vehicle managed by Advent International Corp and a unit of Singapore's Temasek Holdings, the company said in a statement on Friday.

The stock ended the day at Rs 164.20; down 2.55% points.

The board of Crompton Greaves, a conglomerate whose activities stretch from power transmission equipment to fans and air coolers, approved a plan in March to hive off its consumer products business into a separately listed company.

ET Now reported on late Thursday that Advent and Temasek are close to announcing the deal to buy Crompton Consumer Electricals business for a total enterprise value of Rs 6,600 cr, sources with direct knowledge share.

In the first leg of the transaction, Advent will lead the acquisition to buy 34.37 per cent stake from the Crompton Greaves promoters, said the report. Temasek and Advent together will make an open offer to buy 26 per cent stake in the demerged consumer business.