Havells India share price gained as much as 10.22 per cent on Thursday after the company announced 80 per cent stake sale in Havells Sylvania Malta BV to Shanghai Feilo Acoustics.
At 1.54 pm, the share price of Havells India was trading 9.24 per cent up at Rs 308.70. The scrip opened at Rs 280.50 and had touched a high and low of Rs 311.50 and Rs 280.50, respectively, in trade so far. The share price of the company closed 8.05 per cent up at Rs 305.35.
Sale of shares with respect to 80 per cent stake held in Havells Malta shall be completed on or before February 2016. Remaining stake of 20 per cent in case of Havells Malta shall be disposed off during a period of 5 years.
Further, 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 1340 crore. Havells cumulative investment value stands at Rs 980 crores
In a release, the company said, “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.”
In 2007, Havells had acquired Frankfurt-headquartered Sylvania for $300 million through its Dutch subsidiary Havells Netherlands.
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.