KOEL to exit joint ventures with stake sale to Kirloskar Systems
12 November 2009
Kirloskar Oil Engines today announced it intends to sell its entire shareholding in the joint venture companies to Kirloskar Systems for a total consideration of approximately Rs250 crore.
The decision would be subject to such approvals as may be required including that of the shareholders of Kirloskar Systems under Section 372 A of the Companies Act, 1956. The company will exit then exit the respective joint venture agreements.
The company said, it will off load its entire equity capital in joint venture companies – Toyota Kirloskar Motor (11 per cent), Toyota Kirloskar Auto Parts (10 per cent), TG Kirloskar Automotive (26 per cent), Toyota Tsusho India (4.6 per cent), Kirloskar Toyoda Textile Machinery(3.82 per cent) and Denso Kirloskar Industries (10.99 per cent) to Kirloskar Systems.
The company, which manufactures and markets engines, generating sets and components, is part of the century old Kirloskar group comprising eight major group companies that are leading players in key sectors like manufacturing, oil and gas, power, construction and mining, agriculture, industry and transport.
It posted a net profit of Rs62.24 crore, 6.9 per cent fall in net sales to Rs551.06 crore in Q2 September 2009 over Q2 September 2008. The company's profit jumped 127.3 per cent over the corresponding previous year figures.
The company's products find markets in Africa, the Middle East, and other Asian countries.