Auto components maker Bharat Forge today said it has divested majority stake in Chinese joint venture to its partner, China FAW corporation Ltd, for USD 28.2 million (over Rs 175 crore).
"The company's indirect subsidiary in Hong Kong, Bharat Forge Hongkong has divested its 51.85 per cent stake in its Chinese JV operations (FAW Bharat Forge (Changchun) Company Ltd) to its joint venture partner, China FAW Corporation, for USD 28.20 million," Bharat Forge said in a filing to the BSE.
With the divestment, Bharat Forge has ended its eight years old JV in China, it added.
The Pune-based firm, since the beginning of the JV in 2006, had invested Rs 178 crore in the JV in four tranches.
"The divestment will have a positive impact Bharat Forge Ltd cash flows and profitability on a consolidated basis," the company said.
Shares of Bharat Forge were trading at Rs 346.50 a piece on the BSE, up 4.43 per cent from the previous close.