The Belgian unit of India's Crompton Greaves has agreed to buy troubled Hungarian holding company Transelektro for €35 million, India's Business Standard reported in its online edition on Wednesday.
Crompton Greaves will buy Ganz Transelektro Villamossági Zrt (GTV), which exercises ownership rights over the assets of the holding company, as well as Ganz-Transverticum Kft, which is active in design and commercial activities, the paper wrote. Officials at Transelektro declined to comment on the report, but said an announcement would be made Wednesday evening.
GTV's majority owners, Vegyépszer Zrt, Közgép Rt and Resonator Kft, were forced to seek a buyer for the company after they failed to reach an agreement with GTV's creditors. The state-owned Hungarian Development Bank Rt (MFB) may also sell its 42% stake in GTV, although this would require a government decision. MFB obtained the stake for a Ft 4.9 billion capital injection in 2001.
GTV had revenue of just Ft 1.5 billion in the first half of 2006, making the earlier target for a year-end Ft 14 billion untenable.