Centum Electronics has received an approval to sell 51% stake held in Centum Rakon India (CRI), subject to approval of the shareholders. The board of directors at its meeting held on February 26, 2018 has approved for the same. Centum Electronics holds 51% shareholding in the joint venture CRI and the balance 49% shares are held by Rakon.
Based on discussions between Rakon and Centum, it is proposed to sell 51% stake of Centum in CRI to Rakon or its affiliates for a consideration of $5.5 million subject to the required approvals. Further, it is proposed Rakon will pay Centum 75% of consideration on signing of the definitive agreements and the balance 25% on completion of transition or eighteen months from the date of signing whichever is earlier.
Centum Electronics is basically engaged in designing and manufacturing of advanced electronics systems, subsystems, and components. These products cater to various segments such as communications, military, space, automotive and industrial electronics.
