Crompton Greaves dips on termination of T&D deal, weak Q2 results

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters
Crompton Greaves has dipped 9% to Rs 60 on the BSE in early morning trade after the company said that its deal with Pauwels Spaco Ltd-an SPV of first reserve (parties) for sale of its power business in Europe, North America and Indonesia stands terminated.

The certain conditions precedents to the Share Purchase Agreement (SPA), continue to remain unfulfilled and the fulfillment of the same is beyond the reasonable control of the parties in the multi-geography/product line international power business of the company, Crompton Greaves said in a release.

After review of the situation, the parties to the sale have decided not to further pursue the completion and the SPA consequently stands terminated, it added.

Hiowever the company said it will continue to explore alternative geography/product wise options for sale of its international power business, while continuing the strategic initiatives for improving overall operational efficiency of the international power business.

Earlier, on May 9, Crompton Greaves announced the company, along with its subsidiaries, CG International BV and CG International Holdings Singapore PTE, had signed a SPA with Pauwels Spaco – an SPV of First Reserve, for the sale of the Company’s  transmission & distribution (T&D) business outside India.

Meanwhile, Crompton Greaves has reported consolidated net loss of Rs 10.41 crore for the quarter ended on September 30, 2016 (Q2FY17) against a net profit of Rs 10.58 crore in the year ago quarter.

At 09:33 am; the stock was down 6% at Rs 62.20 as compared to 1.14% rise in the S&P BSE Sensex. A combined 9.91 million shares changed hands on the counter on the BSE and NSE so far.