Eicher Motors sell its subsidiary to Spanish firm for $1.8 million
The company said that Eicher Engineering Solutions, Inc. had incurred a loss of $0.89 million during FY 2015- 16.
Eicher Motors on Monday informed NSE that the company's subsidiary, VE Commercial Vehicles Limited (VECV) has sold entire stake in Eicher Engineer Solutions, its subsidiary to Segula Tecnologias Espana for $1.85 million.
"Eicher Engineering Solutions, Inc. and its wholly owned subsidiaries, Eicher Engineering Solutions (Shanghai) Co. Ltd and Eicher Engineering Solutions (Beijing) Co. Ltd. have ceased to be subsidiaries of VECV and in turn of the Company w.e.f. March 17, 2017," the company said in a regulatory filing.
The company said that Eicher Engineering Solutions, Inc. had incurred a loss of $0.89 million during FY 2015- 16. It had a negative networth of $1.74 million as at 31 March 2016.
As per the filing, Segula Tecnologias Espana, S.A.U., is a corporation registered under the laws of Spain.
Commenting on the this divestment, Vinod Aggarwal, MD & CEO VE Commercial Vehicles said, “This divestment is part of VECV’s focused plans towards driving modernization in commercial transportation in India and the developing world. Our immediate business outlook continues to remain positive and we are on track with all our strategic plans and initiatives.”
The Spanish company will pay the amount in four stages: First stage, $1.20 million will be paid to settle Bank loan of Eicher Engineering Solutions, Inc., USA. Second, $0.102 million will be received by VECV. Third $0.275 million will be received by VECV in June, 2017 and later in fourth stage $0.275 million will be received by VECV in September, 2017.