Voltas Ltd. on Thursday said its board has approved the transfer of its overseas branches in Dubai and Abu Dhabi to Universal MEP Contracting LLC., a wholly owned subsidiary of Universal MEP Projects Pte Ltd., Singapore — a step-down wholly owned subsidiary of Voltas.
The transfer, which will include ongoing projects and those under the defects liability period, will be carried out on a slump sale basis as a going concern along with associated assets, liabilities, employees, and project pre-qualifications, Voltas said in a stock exchange filing.
The business transfer will be formalised through agreements to be signed between Voltas and UMCL on or before June 30. Subject to satisfactory completion of conditions precedent and necessary approvals, the transaction is expected to be consummated by Sept. 30, or a mutually agreed extended date, the company said.
Voltas pegged the total consideration for the transaction in the range of Rs 45 crore to Rs 70 crore, subject to adjustments based on the net asset value of the transferred projects on the closing date, as per the agreements.
The completed projects of these branches will remain with Voltas and will be closed and reported to the Reserve Bank of India and the authorised dealer, if required, the filing added.
Voltas said the move is part of an ongoing internal restructuring to consolidate its international business under UMPPL, Singapore, which is now completed in terms of transfer of overseas subsidiaries and joint ventures. Post completion of the transaction, ongoing and DLP projects of Dubai and Abu Dhabi will also be housed under UMPPL, with Voltas retaining full economic interest at the consolidated level.
Separately, Voltas announced the appointment of KV Sridhar as chief financial officer, effective April 1. Sridhar will take over from Jitender Pal Verma, who is set to superannuate on March 31.
Sridhar joins Voltas from Abbott India Ltd., where he was group finance Director. He has previously held leadership roles at Danone, both in India and overseas, as well as at Britannia Industries Ltd. Sridhar is a chartered accountant from the Institute of Chartered Accountants of India and a cost & works accountant from the Institute of Cost Accountants of India.
His appointment was approved by the board based on recommendations from the Nomination and Remuneration Committee and the Audit Committee, the company said.
Shares of the company closed 2.97% lower at Rs 42.90 per share on the NSE, compared to a 0.33% decline in the bench Nifty 50. It has risen 34.54% in the last 12 months.
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