PUNE, February 14: Alaf Laval India Ltd (ALIL) is considering the sale of its 49 per cent stake in ABB Alfa Stal Refrigeration Ltd, following the worldwide takeover of ABB Stal by Danish group Sabro.ALIL officials, who confirmed the move, said that the issue revolved around the price and discussions are currently on with Danish company Sabro. As Alfa Laval India Ltd's stake in the company was purely for investment purposes, a sale of the stake would probably go towards further investments, officials agreed. A final decision over the sale is likely to be reached before the end of the current financial year and would be reflected in the current year's performance.
Alfa Laval India Ltd holds 24.50 lakh shares in ABB Alfa Stal, giving it a 49 per cent stake which represents an investment of Rs 2.45 crore, according to ALIL's balance sheet for 1996-97. This is an increase from Rs 10 lakh in the previous year (1995-1996). Long-term investments have been valued at cost, while current investments are valued atlower cost and market value on individual basis, the balance sheet notes.
Officials declined to speculate on the end use of funds likely to be generated through this sale beyond the fact that it was an investment and would go towards further investments. They clarified that this is unlikely to require shareholder permission, which if required, would be sought at the company's AGM.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
