Hinduja Group flagship firm Ashok Leyland has announced selling its entire holding in Czech arm Avia Ashok Leyland Motors to an undisclosed 'strategic investor' for a cash realisation of USD 10.96 million.
In a filing to the BSE, the company said it has divested its entire stake of 100 per cent ownership interest held in Avia Ashok Leyland Motors s.r.o. to a strategic investor as part of restructuring of investment in subsidiaries.
"The relevant agreements to this effect have been signed and closing of the deal has been completed," it said.
Consequently, Avia Ashok Leyland Motors s.r.o. has ceased to be a wholly-owned subsidiary of the company with immediate effect, the filing said.
"The above transaction has resulted in cash realisation of USD 10.96 million to the company," it added.
In 2006, Ashok Leyland had acquired Avia Truck Business Unit, a leading vehicle manufacturer in Europe, at an estimated cost of around USD 35 million and helped it expand in global markets, and also improve product portfolio.
It was later rechristened as AVIA Ashok Leyland Motors and produced a class of trucks with gross vehicle weights of 6.5 to 12 tonnes.
Due to a slowdown in Indian commercial vehicles market in the past couple of years, Ashok Leyland had announced VRS in 2013 to cut costs.
However, it has recovered to some extent in the past year.
Its standalone net profit in the nine months ended December 31, 2014 stood at Rs 104.83 crore, while in the corresponding period a year ago, it had a net loss of Rs. 334.01 crore.