Havells to sell 80% of EU lighting biz to China firm
BY PTI11 Dec 2015 12:21 AM GMT
PTI11 Dec 2015 12:21 AM GMT
Consumer electricals firm Havells is selling 80 per cent stake in its European lighting business Sylvania to Shanghai-based Feilo Acoustics for over Rs 1,070 crore.
The company will be carrying out the sale by divesting 80 per cent stake each in its two group firms -- Havells Sylvania Malta BV and Havells Exim Ltd, Hong Kong. The combined equity value for 100 per cent stake for both the companies is Rs 1,340 crore (Euro 186 mn) and Havells has a cumulative investment of Rs 980 crore (Euro 140 mn), the company said.
Havells Sylvania Malta BV is valued at Euro 173 million and rest Euro 13 million for Havells Exim Ltd. The stake sale is being conducted by Havells Holding Ltd, a wholly-owned subsidiary of the Noida-based firm. "We have accepted Havells Holding Ltd's agreement to enter into a definitive agreement with Shanghai-based Feilo Acoustics Ltd to divest 80 per cent stake in Havells Sylvania Malta BV subject to shareholder and other approvals," Havells Holding Director Anil Rai Gupta said.
Feilo, a Shanghai stock exchange-listed firm is among top ten lighting company of China and has a market capitalisation of 1.8 billion Euro. Gupta said: "Havells Holding would continue to hold remaining 20 per cent stake with an exit option in next 3 to 5 years." In 2007, Havells had acquired Frankfurt-headquartered Sylvania through its Dutch subsidiary Havells Netherlands for $300 million.Â
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