GE T&D India rose 2.92% to Rs 128.50 after the company agreed to sell its Global Engineering Operations Division to GE India Industrial for a cash consideration of Rs 87.3 crore.
In a filing made on Saturday (16 January 2021), GE T&D India said that it had agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial together with the assets and manpower comprised therein alongwith its corresponding liabilities on slump sale basis on an "as is where is" basis. The company will receive a cash consideration of Rs 87.3 crore on completion of sale of business.
GE T&D India said that the sale would help management to focus on its core business activities besides realizing cash from sale.
The activities of the Global Engineering Operations Division were to provide engineering and product & project design services to global affiliates of GE Grid Solutions and hence non-core to company's business. GE T&D India will continue to have an internal team to support such activities of its business.
GE India Industrial is in the business related to aviation, renewable energy, gas power, digital energy, propellers, other electrical equipments, research & development activity in material science, process technology, engineering etc., software development, engineering design/consultancy services & providing necessary support/back end services to all businesses.
The engineering division had turnover of Rs 85.9 crore out of total turnover of Rs 3,158.7 crore of the company during the financial year ended 31 March 2020, which is less than 3% of the total turnover.
GE T&D India expects the business transfer agreement is expected to be executed by 29 January 2021. It further said that the expected date of completion of sale is at end of day on 31 March 2021.
GE T&D India is engaged in business of products, projects and systems for electricity transmission and related activities.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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