Havells India will divest its 80 per cent stake in the company by February 2016, whereas it will sell its 20 per cent stake over 3-5 years. (Screenshot of company's website)
Havells India on Thursday announced that it will sell its 100 per cent stake in Havells Sylvania Malta BV and Havells Exim in a staggered manner, subject to shareholders and related approvals at a deal valued at Rs 1,340 crore. The company will divest its 80 per cent stake in the company by February 2016, whereas it will sell its 20 per cent stake over 3-5 years.
Havells India also proposed to divest 80 per cent stake in its wholly owned subsidiary, Havells Exim Limited, Hongkong. The combined equity value for 100 per cent stake for both companies is around Rs 1,340 crore. Havells cumulative investment value stands at Rs 980 crores.
“Havells India has received an intimation from its wholly owned subsidiary, Havells Holdings Limited, that it proposes to enter into definitive agreement with Shanghai Feilo Acoustics Co to divest 80 per cent stake in Havells Sylvania Malta BV, subject to shareholders and related approvals. Feilo is a leading listed company with key shareholding held by Inesa Limited, a State Owned Enterprise (SoE) of Shanghai Government. Havells Holding Limited, Isle of Man would continue to hold remaining with exit options in next 3‐5 years, ” the company said in a BSE filing.
For the quarter ended September 2015, Havells India posted net profit of Rs 120.72 crore, up 0.93 per cent, against net profit of Rs 119.61 crore in the corresponding quarter a year ago.
In the past one year, the share price of Havells fell 15.14 per cent to Rs 282.60 on December 9. Sensex fell 9.93 per cent during the same period.
Reacting to the news, the company shares rose as much as 5.16 per cent in morning trade.