GE T&D India has agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial Pvt Ltd, the former said in a stock exchange filing.
The sale together with the assets and manpower comprised therein along with its corresponding liabilities on slump sale basis on an “as is where is” basis, the company said.
The activities of the said business were to provide engineering and product & project design services to global affiliates of GE Grid Solutions and hence non-core to company’s business.
GE T&D India Ltd will continue to have an internal team to support such activities of its business, it said.
The Business Transfer Agreement is expected to be executed by January 29, 2021. The expected date of completion of sale is March 31, 2021 subject to satisfaction of identified conditions precedents and approval of shareholders for related party transaction.
The consideration received from the sale is Rs.87.3 crore, GE T&D India said.
“Global Engineering Operations Division was non-core business activity for the Company and the sale would help management to focus on its core business activities besides realizing cash from sale,” GE T&D India said whilst discussing the rationale for sale.
GE India Industrial Pvt Ltd is in the business related to aviation, renewable energy, gas power, digital energy, propellers, other electrical equipments, research & development activity in material science, process technology, engineering etc., software development, engineering design/consultancy services & providing necessary support/back end services to all businesses.
On the other hand, GE T&D India Ltd is engaged in business of products, projects and systems for electricity transmission and related activities.
The buyer GE India Industrial Pvt Ltd had a sales turnover of Rs.4042.7 crore during the year ending March 31, 2020. Its net worth as of same date was Rs.4747.8 crore.
Both the buyer and seller companies are part of the General Electric (GE) Group.
Featured photo (www.ge.com) is for illustration only