This Article is From May 13, 2016

Advent, Temasek Launch Open Offer To Buy Crompton Greaves

Advent, Temasek Launch Open Offer To Buy Crompton Greaves
New Delhi: Private equity investors Advent International and Temasek on Friday launched Rs 1,695 crore open offer to acquire 26 per cent stake in Crompton Greaves Consumer Electricals (CGCEL) to become majority shareholders. 

The open offer is to acquire "up to 162,953,997 equity shares constituting 26 per cent of the total share capital of the target company," Cromptom Greaves said in BSE filing.

"The open offer is made at a price of Rs 104 per offer share, the total consideration payable by the acquirer... will be Rs 1,694.72 crore," it added.

Shares will be acquired through Advent International Corporation's Amalfiaco and Temasek Holdings (Private) Ltd's MacRitchie Investments Pte Ltd.

In April last year, Avantha Group sold its entire holding of 34.37 per cent in demerged consumer products business of Crompton Greaves to private equity investors Advent International and Temasek for Rs 2,000 crore.

As per the terms of sale agreement, the two private equity firms had agreed to make an open offer for additional shares to gain ownership of the consumer unit of the Avantha group - CGCEL - which will be listed on NSE and BSE.

CGCEL's consumer products ranges from fans, lamps and luminaires to pumps and household appliances such as water heaters, mixer grinders, toasters, irons and electric lanterns.

Shares of Cromptom Greaves were trading at Rs 61.90 apiece, down 2.90 per cent, from their previous close on the BSE.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)