CG cancels the deal to sell overseas power business
Electrical equipment manufacturer Crompton Greaves has terminated a pact to sell its international power business to a U.S. private equity firm, First Reserve International.
The proposed deal with Pauwels Spaco Ltd, a special purpose vehicle of First Reserve, was cancelled after the two sides could not fulfill certain necessary conditions, Crompton Greaves said in a stock-exchange filing.
Crompton Greaves had in March signed the deal for the sale of its European, North American and Indonesian power businesses at an enterprise value of $126 million.
The proposed sale was part of the company’s efforts to reduce debt and focus on its faster-growing Indian businesses, it said at the time.
The company announced it will continue to explore alternative options for sale of its international power business.
In October last year, Crompton Greaves sold its power transformer business in Canada to PTI Holdings Corp. Last month, Crompton Greaves said it would sell its enterprise automation business to Saudi Arabia’s Alfanar for $133 million.
Source: VC Circle