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| Equity offload in Andrew Yule gets Cabinet nod |
| BS Reporter / New Delhi Oct 16, 2009, 00:54 IST |
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The Cabinet on Thursday gave its approval to offloading 26 per cent equity held by Andrew Yule & Company in Phoenix Yule to Continental Conti Tech for Rs 62.82 crore, including an additional compensation of Rs 3.69 crore.
Phoenix Yule is a joint venture between Phoenix Aktiengesellschaft of Germany and Kolkata-based public sector undertaking Andrew Yule & Company. The Cabinet approved the valuation of shares at Rs 49.50 a share for 1.19 crore shares of Phoenix Yule.
The nod came after the decision of the Cabinet in February 2007 on the issue of restructuring of Andrew Yule & Company, which is into the manufacture of industrial fans, tea processing machinery, industrial pollution control equipment, system and allied products.
Funds raised through the disinvestment of Andrew Yule & Company’s share in Phoenix Yule will go towards the repayment of a part of the interest-free loan of Rs 87.06 crore provided by the government in March 2008. The loan was extended to Andrew Yule & Company as part of its restructuring package.
The belting division of Andrew Yule & Company was spun off and a joint venture firm with Phoenix Aktiengesellschaft, having 74 per cent equity, and Andrew Yule & Company, having 26 per cent equity, was formed in November 1998.
Phoenix Yule is one of the largest manufacturer of conveyor belts in India. On January 16, 2007 Phoenix Aktiengesellschaft had merged with Conti Tech AG, a subsidiary of Continental AG.
Meanwhile, the Cabinet Committee on Infrastructure gave its approval to the government’s funding to the tune of Rs 827.85 crore for the development of the Commonwealth Games Village (other than residential zone), the competition venues at Yamuna and Siri Fort Sports complexes; and for upgrade/refurbishing of existing sports facilities at Yamuna, Siri fort and Saket Sports Complexes for training facilities.
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