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Crompton Greaves sells overseas power business for $126 million
March 9, 2016 / 6:38 AM / 2 years ago

Crompton Greaves sells overseas power business for $126 million

A money lender counts rupee notes at his shop in Ahmedabad, India, May 6, 2015. REUTERS/Amit Dave/Files

NEW DELHI (Reuters) - Crompton Greaves LtdCROM.NS said it would sell its overseas power business to a U.S. private equity fund for an enterprise value of 115 million euros ($126.1 million), to pay down debts and invest in faster growing Indian businesses.

The company said it would sell its transmission and distribution business in Europe, North America and Indonesia to First Reserve International Ltd, adding it was looking to offload more assets.

Crompton Greaves shares jumped as much as 8.9 percent after the news.

“The company continues to actively examine its other international B2B businesses with a view to monetise these businesses to enhance shareholder value,” the firm said in a regulatory statement on Wednesday.

Crompton Greaves, which makes power transmission equipment, fans and air coolers and dates its history back to an English engineer in 1878, in February posted a loss for the three months to Dec. 31, sending its shares tumbling 28 percent.

($1 = 0.9117 euros)

Reporting by Tommy Wilkes; Editing by Biju Dwarakanath

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