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The company said that a proposal to sell its GEOD to GE India Industrial (GEIIPL) by way of slump sale, for a purchase consideration of Rs 87.3 crore, was placed before the shareholders of the company through a postal ballot notice dated 4 February 2021.
The resolution was not approved by the requisite majority of non-related shareholders. Accordingly, the business transfer agreement between the company and GEIIPL stood terminated.
Subsequently, in relation to short term, non-exclusive contracts/purchase orders for global engineering services with other companies in the GE Grid Solutions division outside India, the company was formally notified that with effect from 30 June 2021, no new contracts/purchase orders will be issued to the company in relation to those services and existing contracts/purchase orders will lapse at their expiry date or be terminated by notice.
As informed by the company in its last communication on 14 December 2021, GE Grid Solutions at the request of the company has extended the termination date to 31 March 2022.
The management has been continuously exploring options to minimize the impact of the above-mentioned termination on the company. As part of this effort, the company commissioned an independent valuer – BDO Valuation Advisory who have valued the GEOD business at Rs 140.56 crore compared to the earlier valuation Rs 87.3 crore.
RBSA Capital Advisors who is a merchant banker has also issued a fairness opinion affirming that the valuation is fair and reasonable to the shareholders.
In this context, the management of the company is currently in discussions with GE Grid Solutions and GEIIPL regarding the proposed slump sale of GEOD business, and they have expressed their continued interest at the revised valuation.
GE T&D India reported net loss of Rs 7.73 crore in Q2 September 2021 as against net profit of Rs 8.61 crore in Q2 September 2020. Net sales declined 2.20% to Rs 851.71 crore in Q2 September 2021 over Q2 September 2020.
GE T&D India is a leading player in the power transmission and distribution business. The company provides a range of solutions for connecting and evacuating power from generations sources onto the grid, providing utilities with the tools needed to support the increase in demand swiftly. GE T&D India offers products ranging from medium voltage to ultra-high voltage (1200 kV) for power generation, transmission and distribution industry.
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