Monday 13 January 2014

Bharat Forge’s arm divests its 51.85% stake in its Chinese JV operations

Bharat Forge’s indirect subsidiary in Hong Kong has divested its 51.85% stake in its Chinese JV operations ‘FAW Bharat Forge (Changchun) Company’ to its Joint Venture (JV) partner, China FAW Corporation, for $28.208 million amounting Rs 175 crore ending its 8 year old JV in China. Bharat Forge, since inception of joint venture in 2006, had over a period of time invested Rs 178 crore in 4 tranches.

Although the transaction was completed on January 13, 2014, the effective date for divestment will be October 31, 2013. The divestment will have a positive impact on the company’s cash flows and profitability on a consolidated basis.

Bharat Forge engages in manufacturing of close die and open die forging, crankshafts, front axle beams, steering knuckle, connecting rods, rocker arm and many more components.

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