CG Power and Industrial Solutions’ step-down subsidiary has completed the divestment of its power business in the US to WEG Electric Corp for an enterprise value of USD 37 million, the company said today. “We wish to inform you that the company’s step-down subsidiary CG Power System Belgium NV completed the above divestment on July 31,” CG Power and Industrial Solutions said in a BSE filing.
In June this year, CG Power and Industrial Solutions had announced execution of the stock purchase agreement (SPA) for divestment of its power business in the US, comprised in its wholly owned overseas step-down subsidiary, CG Power USA Inc to WEG Electric Corp, a nominee of WEG SA, a Brazilian public listed company.
CG Power USA has ceased to be a wholly owned step-down overseas arm of the company and has been renamed as WEG Transformers USA Inc upon completion of the divestment. The company added that the proceeds of the sale will be used to retire a substantial portion of its international debt.