Chennai-based water technology firm, Va Tech Wabag Ltd., on Saturday, announced the sale of its Czech Republic subsidiary ‘VA Tech Wabag Brno spol. S.r.o.’ to Czech Republic-based engineering major, VCL Group, for consideration of €1 million.
In a regulatory filing, Va Tech Wabag Ltd said its Board on Saturday granted approval for 100 per cent stake sale in Wabag Czech.
The company added that the move is part of the business strategy to optimise the Group’s structure and in line with its strategic focus to reduce its exposure to European geographies.
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Established on May 27, 1994, Wabag Czech is held by VA Tech Wabag GmbH, Austria and was acquired by VA Tech Wabag Ltd in 2007 as part of the acquisition of VA Tech Wabag Global Business from Siemens Aktiengesellschaft Osterreich through VA Tech Wabag (Singapore) Pte. Ltd. The Czech subsidiary contributed 0.62 per cent of the turnover of Va Tech Wabag Ltd in FY22.
The share transfer process and related formalities between Wabag Austria and VCL Group, a.s., OSTRAVA, Czech Republic was completed on March 10 and after the sale, Wabag Czech ceased to be a subsidiary of Va Tech Wabag Ltd, the company said.
Stocks of Va Tech Wabag closed at ₹344.45 apiece on NSE on Friday, down by 2.55 per cent over the previous day’s close.
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