CG Power and Industrial Solutions Limited has announced with reference to the execution of Business Transfer Agreement and Share Sale and Purchase Agreement (“Agreements”) with Ganz Villamossagi Zrt and Alester Holdings Limited (“Buyer”) with respect of the sale of Assets and Shares of the Company’s businesses in Hungary (excluding switchgear business) owned by the Company’s subsidiary, CG Electric Systems Hungary Zrt (“ESHU”) at an Enterprise Value of Euro 38 mn, the necessary documents for effecting the transfer of all the Shares of ESHU to the Buyer have been executed. However, in view of certain conditions subsequent agreed to be performed between the parties, the Shares are held in escrow and will be handed over to the Buyer upon completion of the conditions susequent.

Consequent to the above, ESHU ceases to be an overseas subsidiary of the Company. None of the Buyer belong to promoter group/group companies and the above sale is not a related party transaction. The above sale is in line with the Company’s stated strategy of reducing debt and focusing on core operations in India, besides enhancing shareholders value.