ABB India creates a wholly owned subsidiary to operate it’s turbocharger business
- ByStartupStory | December 23, 2021
Following ABB India’s proposal to divest or sell its turbocharger business in the Process Automation business segment in June 2021, the company has decided on 22nd of December to incorporate a wholly-owned subsidiary to which it will sell its turbocharger business for Rs 310 crore.The new entity to be incorporated will be a subsidiary of the company, a subsidiary of promoter ABB Asea Brown Boveri Ltd. However, the company’s promoters will not hold any shares in the subsidiary, the company said in a statement.
“In the meeting of the Board of Directors held on December 21, 2021, the Board considered and approved the incorporation of a wholly-owned subsidiary and sale of the company’s turbocharger business as a going concern, on a slump sale basis to its wholly-owned subsidiary for a consideration of Rs 310 crores”. The company mentioned in its regulatory filing.
The turbocharger business has a turnover of Rs 187 crore, which is approximately 3 percent of the total turnover of the company, for the financial year ending December 31, 2020. The business transfer agreement will be executed following incorporation of the wholly-owned subsidiary.
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