scorecard
  1. Home
  2. smallbusiness
  3. Companies
  4. Crompton Greaves likely to sell-off overseas power business to First Reserve

Crompton Greaves likely to sell-off overseas power business to First Reserve

Crompton Greaves likely to sell-off overseas power business to First Reserve
Smallbusiness1 min read
Avantha Group’s Gautam Thapar is in talks with private equity firm First Reserve to sell Crompton Greaves’ overseas power assets in a bid to cut its losses and reduce the liability.

After selling the consumer products, Thapar is close to finalise yet another deal to reduce group debt.

Sources with direct knowledge told Economic Times that Crompton Greaves is in advanced talks with First Reserve.

The two companies entered into exclusive talks to firm-up the transaction, a source told the financial daily.

Crompton Greaves wants to sell-off overseas power business and sell the unit by FY16 Quarter-2.

CG Global has two businesses-power and industrial & automation.

ET reported that Crompton Greaves Global's debt stands at Rs 1800 crore as of FY15 out of the Rs 2600 crore total debt on CG's books. International business posted a loss of Rs 520 cr, including Rs 190 cr write-off in FY15.

An industry expert told the financial daily, "Crompton Greaves may not gain any additional cash in this transaction, but, even if the loss making business along with its liability is off the Crompton's books, the stock can be re-rated upwards."

Crompton Greaves spokesperson did not comment.

READ MORE ARTICLES ON


Advertisement

Advertisement