GE T&D India, a company engaged in power transmission and distribution business, said it is discussing sale of its Global Engineering Operations Division (GEOD) after a revised valuation by an independent valuer saw a 61 per cent jump in valuation.
GE T&D India said it is in discussions with GE Grid Solutions and GE India Industrial (GEIIPL) regarding the proposed slump sale of GEOD business, and ‘they have expressed their interest at the revised valuation’.
Revised value
Independent valuer, BDO Valuation Advisory LLP had valued the GEOD business at ₹140.56 crore compared with the earlier valuation of ₹87.3 crore. RBSA Capital Advisors LLP, who is a merchant banker, has also issued a fairness opinion affirming that the valuation is fair and reasonable to the shareholders.
Last year GE T&D India had proposed to sell the GEOD to GEIIPL by way of slump sale for ₹87.3 crore. The proposal was put before the shareholders through a postal ballot notice dated February 4, 2021.
However, the resolution was not approved by the requisite majority of non-related shareholders. Accordingly, the business transfer agreement between GE T&D India and GEIIPL was terminated.
“Subsequently, in relation to short term, non-exclusive contracts/purchase orders for global engineering services with other companies in the GE Grid Solutions division outside India, the company was formally notified that with effect from June 30, 2021, no new contracts/purchase orders will be issued to the company in relation to those services and existing contracts/purchase orders will lapse at their expiry date or be terminated by notice,” GE T&D India said a statement.
GE Grid Solutions at the request of GE T&D India has extended the termination date to March 31, 2022. “The management has been exploring options to minimise the impact of the above mentioned termination on the company,” GE T&D India said.