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Hyderabad: Cyient Ltd said its board has approved the acquisition of the remaining 49% stake in Cyient Solutions and Systems Pvt Ltd (CSSPL), its joint venture with Israel-based Blue Bird Aero Systems, making the aerospace and defence company its wholly owned subsidiary. Cyient said in a regulatory filing on Thursday that its board of directors had approved the purchase of the balance equity stake in CSSPL for a cash consideration of ₹1 lakh. Cyient currently owns 51% of CSSPL, while the remaining 49% is held by its Israeli partner. Incorporated in 2017, CSSPL is engaged in the manufacturing, assembling, integration, testing and sale of unmanned aerial systems.
Cyient said the business of CSSPL is aligned with its main line of operations.
CSSPL reported zero turnover over the past three years, according to the disclosure.
Cyient also said the acquisition does not fall under related-party transactions, and that its promoter, promoter group or group companies have no direct interest in the transaction except through their shareholding in Cyient.
The company said the transaction is expected to be completed within 120 days, subject to applicable corporate, FEMA, tax and statutory compliances.