Alstom India Ltd, a public listed local subsidiary of French engineering conglomerate Alstom, has said its board has approved sale of its auxiliary components business (air preheaters and industrial mills) to OAK Energy India Pvt Ltd, an Indian arm of European investment firm Triton for Rs 51.3 crore ($8.6 million), as per a stock market disclosure.
This is a part of global deal announced in April in which Alstom agreed to sell its auxiliary components business to Triton for an enterprise value of around €730 million ($1 billion).
The sale is part of the non-core asset disposal programme, announced by Alstom last November.
The auxiliary components business sold is part of the steam segment within Thermal Power and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications.
Headquartered in Germany, the activities employ more than 1,500 people worldwide, with operations in Germany, the US, Japan, China, India, Brazil, Switzerland and the Czech Republic. All employees will be transferred.
The auxiliary components generated less than 2 per cent of the Indian arm’s total income during the last financial year and therefore consent of the shareholders of the company is not required for its sale and transfer.
However, in light of the public announcement made by GE Energy Europe B.V. on May 5, 2014 to acquire additional stake in two public listed Indian arms of French power equipment major Alstom- Alstom T&D India Ltd and Alstom India Ltd, it will need shareholders' approval through postal ballot for the sale.
Alstom is one of the world’s leading energy solutions and transport companies. Present in India since 1911, Alstom has capabilities in engineering, manufacturing, project management and supply of products and solutions for power generation, transmission and transport infrastructure requirements. It has two flagship companies – Alstom India (formerly Alstom Projects) and Alstom T&D India. Together the two firms employ around 9,000 people.
Shares of Alstom India were trading at Rs 506.05 each, down 0.07 per cent on BSE in a strong Mumbai market on Friday at 3.24 PM.
Triton is an investment firm, focused on investing in and developing leading Northern European companies.
(Edited by Joby Puthuparampil Johnson)