The union cabinet today approved the sale of the 26 per cent holding of state-owned Andrew Yule and Company in Phoenix Yule Limited to Continental Conti Tech for a total consideration of Rs62.82 crore, including an additional compensation of Rs3.69 crore.
Phoenix Yule Limited is a joint venture of state-owned Andrew Yule and Company where the venture capital outfit of Phoenix Aktiengesellschaft (AG) Germany holds the remaining 74 per cent equity stake.
The cabinet approved the offloading of 11,943,074 shares of Phoenix Yule Ltd held by Andrew Yule and Co, at Rs49.50 per share.
Andrew Yule and Company is a Kolkata-based central public sector undertaking under the department of heavy industries. The company is engaged in the manufacture of industrial fans, tea processing machinery, industrial pollution control equipment, system and allied products.
The belting division of AYCL was spun off and a joint venture firm with Phoenix having 74 per cent equity and AYCL 26 per cent equity was formed on 19 November 1998.
PYL, one of the largest manufactures of conveyer belts in India, merged with Conti Tech AG, a subsidiary of Continental AG, on 16 January 2007.