Escorts to divest stake in JVs to partners
By Pradeep Rane | 13 Jul 2002
Mumbai: Escorts Ltd has announced the divestment of its equity in Escorts JCB Ltd and Escorts Class Ltd in favour of its joint venture partners, JC Bamford UK and Claas (Germany), respectively.
The company is also in the process of divesting its 50-per cent shareholding in Escorts Mahle Ltd to Goezte India Ltd (GIL). GIL is a joint venture of Escorts and Federal Mogul, USA, in which both partners have 27.21-per cent and 25.47-per cent stake, respectively.
The post-tax cash inflow to Escorts as a result of the sale of its equity in the three companies is expected to be in the region of Rs 2,350 million and shall be booked in this financial year.
The board of directors of Escorts Ltd has approved these disinvestments, which are subject to the requisite statutory approvals, at a meeting held on 12 July 2002.
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