Avantha Group Company CG has announced the divestment of its entire 50% shareholding in CG Lucy Switchgear Ltd to W Lucy & Co Ltd, UK.
CG will divest its entire investment of 600 000 equity shares of Rs.10/- each made in 1994 (aggregating to Rs.6 Million) in the share Capital of CG Lucy Switchgear Ltd to W Lucy & Co Ltd, UK for a consideration of €5.5 million (Equivalent to Rs.402.60 million) and the execution of consequent definitive agreements.
CG Lucy Switchgear Ltd is a 50-50 manufacturing joint venture between the Company and W Lucy and Co. Ltd, UK. Established in 1994, its factory is situated in Nasik, India and is a manufacturer for Ring Main Units (RMUs) for the India market. Post divestment, CG will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG-Lucy. The deal forms part of CG’s strategy to focus on its B2B activity in the Power HV sector.
Commenting on the deal, Avantha Group Company CG’s CEO & Managing Director, Laurent Demortier, said, “We are pleased with the performance achieved by this joint venture and we thank all the employees and customers who supported the development of CG-Lucy. We believe that W Lucy is the best potential owner for ensuring a long-term future for CG-Lucy. Combining the CG Lucy Indian operations and Lucy Electric business will allow CG-Lucy to focus on developing products specifically for the Indian market and expand its offering within the MV sector”.
Edited from press release by Angharad Lock