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.
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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