Crompton Greaves to sell 35% stake in its consumer durables business

Crompton Greaves is reportedly planning to sell 35% stake in its consumer durables business to private equity firm Advent for $300 million. 

The transaction with Advent has valued the consumer business at Rs 80 a share.

The Crompton Greaves board had demerged the consumer business last year for a possible sale. But based on comments received from Sebi, the stock exchanges and from small investors, the Crompton board reconsidered the merger proposal and decided to implement a 100% demerger of the consumer products business, in a manner that the shareholding pattern of the resulting consumer company shall mirror the shareholding pattern of CG. 

Earlier, Crompton was planning to retain 26% stake in the consumer durable business.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. With more than 15,000 employees across its operations in around 85 countries, CG provides electrical products, systems and services for utilities, power generation, industries, and consumers.