The board of directors of Blue Star, in its meeting
held today, has approved a proposal for the sale of 24,98,824
equity shares of Rs 10 each held by the company in Yokogawa
Blue Star to Yokogawa Electric Corporation, Japan, at
a price of Rs 67 per share amounting to Rs 16,74,21,208.
Star is a leader in the field of central air-conditioning
and commercial refrigeration, while Yokogawa Blue Star
enjoys a fine reputation in the field of industrial automation.
Electric Corporation had expressed an interest in increasing
its holding in Yokogawa Blue Star almost three years ago.
Recent negotiations with Blue Star successfully concluded
in an agreement, which has been approved by the respective
boards of the two companies.
Blue Star chairman and CEO Ashok M Advani: We do
not find any synergy between air-conditioning and industrial
automation which Yokogawa specialises in. Hence our decision
to exit from the joint venture. I must say that we have
had an excellent partnership with
Yokogawa Electric Corporation for 16 years. I am confident
that both Blue Star and Yokogawa will benefit from the
proposed transaction, and grow in their core businesses
in the coming years.