Bharat Forge divests stake in China joint venture for Rs175 crore
13 Jan 2014
Kalyani Group flagship Bharat Forge Ltd has exited its Chinese joint venture with its Hong Kong-based indirect subsidiary Bharat Forge Hongkong divesting a 51.85 per cent stake in its Chinese joint venture FAW Bharat Forge (Changchun) Company Ltd in favour of its joint venture partner China FAW Corporation Ltd for $28.208 million (Rs175 crore).
"The company's indirect subsidiary in Hong Kong, Bharat Forge Hongkong has divested its 51.85 per cent stake in its Chinese JV operations (FAW Bharat Forge (Changchun) Company Ltd) to its joint venture partner, China FAW Corporation, for $28.20 million," Bharat Forge said in a filing with the BSE.
Pune-based Bhart Forge had invested about Rs178 crore in the joint venture since its launch in 2006. The investments were made in four tranches, Bharat Forge said in its filing with the stock exchanges.
Though the transaction was completed today, the company said, the effective date for divestment would be 31 October 2013.
The move would have a positive impact on its cash flows and profitability on a consolidated basis, the company said.
"The divestment will have a positive impact Bharat Forge Ltd cash flows and profitability on a consolidated basis," the company said.
The Bharat Forge stock traded at Rs 341.50 on the Bombay Stock Exchange (BSE), showing a gain of Rs9.70.
