CG Power in the green

CG Power & Industrial Solutions is up and about, going up to Rs.87.10, just Rs.10 short of its 52-week high of Rs.97.30.

The stock price is up on news that it has decided to accept the binding offer of WEG S.A for acquisition of the company's power business in USA, comprised in the company's step down overseas subsidiary, CG Power USA Inc. This will bring in CG Power $37 million.

In this regard, CG Power Systems Belgium N.V., the company's step down overseas subsidiary has executed a stock purchase agreement on 20 June 2017 with WEG Electric Corp for sale of its 100% stake in PSUS, comprising exclusively of the Company's power business at closing.

The deal is part of the company's strategy of debt reduction and focusing on its core operations and core market in India.

This deal is expected to close by 31st July 2017 after which the US company will cease to be an overseas subsidiary of the company.