Crompton Greaves has surged 13% to Rs 86.35 on BSE in intra-day trade after the company announced that it has received a binding offer for acquisition of its B2B Automation business from Alfanar.
“The company has received a binding offer for acquisition of the company’s B2B Automation business, comprising of ZIV Aplicaciones y Technologies, S.L. (Spain), its subsidiaries along with the related automation business in UK, Ireland, France and India at an enterprise value of Euros 120 million from ‘Alfanar’” Crompton Greaves said in a press release.
Consequent to acceptance of the above binding offer, the Automation business of the Company in India will be hived off to a wholly owned subsidiary to be incorporated by the company for completing the acquisition by Alfanar, it added.
Crompton Greaves said the above strategic action is intended to meet the company’s objective of debt reduction and on focusing on its core operations in India which provides significant growth opportunity, besides enhancing shareholders value.
The company expects the completion of the acquisition by Alfanar by January 31, 2017.
Alfanar operates construction and manufacturing businesses, design & development centers and a number of facilities in the Middle East, Asia and Europe.
At 03:03 pm, the stock was up 12% at Rs 85.45 on BSE. A combined 14.7 million equity shares changed hands on the counter on BSE and NSE so far.