Cyient to divest 49% stake in Puerto Rican JV

NEW DELHI: Hyderabad-based tech firm Cyient today said it will divest its 49 per cent equity ownership in joint venture firm Infotech Aerospace Services to its partner Pratt & Whitney. The consideration received from the transaction is $1.8 million, post additional dividend disbursement of $9.1 million from the cash reserves, Cyient said in a BSE filing. "The transaction would be EPS (earnings per share) neutral. The closing of the transaction is subject to regulatory approvals and customary closing conditions," it added. Shares of Cyient were trading at Rs 519.65 apiece, down 1.19 per cent from previous close on the BSE. Infotech Aerospace Services Inc (IASI), a 51:49 joint venture between Pratt & Whitney and Cyient, was set up in 2013 in Isabela, Puerto Rico. It provides aerospace defence design, development and related services, primarily to United Technologies and its business units. Pratt & Whitney is a division of United Technologies Corporation. Pratt & Whitney's aircraft engines are used in civil as well as military aviation. IASI contributed to Rs 11.8 crore to Cyient's profit after tax in FY2017, the filing said. Its total net profit was Rs 236.90 crore in the said fiscal. "...we have been exiting the non-core businesses....

29 Published By - The Economic Times - 2017.09.14. 10:34
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