Mumbai, June 25: Greaves Ltd's board has decided to divest its 23.67 per cent stake in Crompton Greaves Ltd to B M Thapar Group, even as the company is planning to acquire Pembrill Engineering Pvt Ltd and Prembrill Industrial & Engineering Company Pvt Ltd for an undisclosed sum. The decision to divest the stake, acquire Pembrill and merge its investment companies with Greaves Leasing Finance Ltd (GLFL) was taken at the company's board meeting on Wednesday, Greaves Ltd informed the Bombay Stock Exchange.
Greaves will divest its shareholding of 1.24 crore equity shares in the joint venture firm Crompton Greaves to Thapar Group. The company had earlier transferred the voting rights of these shares to Thapar, pursuant to Thapar Family Settlement, it said.
The company's board also decided to acquire Pembrill Engineering Pvt Ltd and Pembrill Industrial & Engineering Company Pvt Ltd, manufacturers of fluid coupling and cluster gears, respectively. These acquisitions are subject to completion of "satisfactory due diligence", it said.
Greaves would also merge its investment firms - Rajpath Investment Ltd and Carnation Investment Ltd - with GLFL, it said adding, GLFL is its 100 per cent subsidiary. The merger is effective from July one, 2003, subject to mandatory and regulatory approvals, the statement said.
Bureau Report