Alstom India, an arm of French firm Alstom, has decided to sell its transport business to another group company, Alstom Transport, for Rs 176.90 crore.
Alstom India's board of directors have approved the sale and transfer of the transportation system undertaking to Alstom Transport India, for a total consideration of not less than Rs 176.90 crore in cash on a 'slump sale' basis.
The deal is a on a slump sale basis, for a lump sum consideration without values being assigned to individual assets and liabilities.
"Alstom India's Board of Directors have approved the sale and transfer of its transportation system undertaking to a group company, Alstom Transport India for a total consideration not less than Rs 176.90 crore in cash," the company said in a regulatory filing recently.
Alstom India said the sale of the transport segment of the company shall be is considered as discounting operations.
The board will take appropriate decision regarding the extent and mode of utilisation of cash, including for distribution to the shareholders of Alstom Transport and general corporate purposes.
Alstom India reported a net loss at Rs 7.58 crore for the third quarter that ended in December 2013. It had recorded a net loss of Rs 14.59 crore in the corresponding period of the previous fiscal year (FY13).
Revenues from the transport business remained unchanged at Rs 4.69 crore during the period.