CG Power completes divestment in France subsidiary

CG Power & Industrial Solutions Limited informed the bourses that the divestment process of its subsidiary, CG Service Systems France SAS (SEFR) has been completed on July 20, 2020, and with this, SEFR ceased to be a step-down subsidiary of the company.

On June 24, 2020, the company had informed that its wholly-owned subsidiary named CG International BV entered into a share purchase agreement (SPA) with AK Group France for the divestment of its entire shareholding in its subsidiary, CG Services Systems France SAS, (SEFR) along with its liabilities, for a net consideration of 30,000 Euros.

The above agreement was subject to party meeting the conditions precedents and its closing was envisaged on or before July 30, 2020.

AK Group France is not related to the existing promoter group or group companies and the divestment is not a related party transaction. SEFR is engaged in providing services of on-site maintenance and repair of power transformers along with other allied services.

A part of Avantha Group, CG Power And Industrial Solutions Limited was formerly known as Crompton Greaves Limited. The company is engaged in the business of power transformers, reactors, low tension motors, and switch gears. It provides end-to-end solutions to utilities, industries as well as consumers.

On Wednesday, the stock of CG Power opened at Rs 8.15. In the early morning session, it was up by 3.3 per cent at Rs 8.42 from its previous close of Rs 8.32.