CG Power is currently the top loser on the BSE. The stock lost over 9% to Rs.34.10, very close to today’s 10% LC at Rs.33.80.
Yesterday night, the company announced its deal with Hungary based companies to sell off CG Power’s Hungary business (excluding switchgear) at an enterprise value of €38mn has fallen through.
The company, citing the reason, said, “that certain conditions subsequent agreed to be performed between the parties have not been met, hence the Agreements have been terminated with effect from April 30, 2019.”
Ganz Villamossagi and Alester Holdings had agreed to buy CG Power’s Hungary business.
The sale of its Hungary business is crucial for the company as more than contributing, it has been eating away CG Power’s profits.
CG had entered into this deal in August 2017 and was expected to be closed by March 2018; but it constantly ran into one issue or the other and finally now, it has been called off.