Voltas buys stake in two joint ventures
10 Dec 2007
Mumbai: Tata Group company Voltas Ltd has bought Fedders International Airconditioning''s 50 per cent stake in a joint venture for Rs7.5 crore, Voltas said today.
Voltas said that it will acquire the stake in Universal Comfort Products Ltd (UCPL) and Saudi Ensas Company Ltd (SECL) pursuant to which the companies will become its wholly-owned subsidiaries.
UCPL is a 50:50 joint venture between Voltas and Fedders International Air-conditioning Pvt Ltd (FIACPL), a subsidiary of US-based Fedders Corporation.
Upon transfer of shares, UCPL would cease to be a joint venture company and become a wholly-owned subsidiary of Voltas Ltd. The transaction would be subject to requisite approvals, the statement said.
The air conditioning and cooling products maker said in a separate statement that it also bought the 51 per cent stake in a Saudi Arabian venture.
Voltas would acquire the 51 per cent stake in Saudi Ensas Company Ltd (SECL), a joint venture between itself and a local company in Saudi Arabia. Voltas and its subsidiaries hold 49 per cent of the capital in SECL.
Upon conclusion of the acquisition, SECL would turn into a 100 per cent subsidiary of Voltas Ltd.
