Economic Times reported that four companies, including the Delhi based Triveni Engineering, Elecon Engineering, Bharat Forge and a Belgian gear box producer, have been shortlisted to buy controlling stake in the Coimbatore based Shanthi Gears, India's second-largest industrial gear box manufacturer.

KPMG, which is advising promoters of Shanthi Gears on the stake sale, has drawn up a shortlist after receiving indicative bids.

Shanthi's chairman Mr P Subramanian and his family is likely to take a final decision on selling their 44% stake in the next two weeks.

Shanthi Gears CFO Mr S Srinivas did not answer specific queries on the subject. The bankers said that "The process is nearing completion. You will know the result soon.”

The Belgium company, whose name could not be ascertained, is understood to have put in the highest bid. ET reported a few weeks ago that the Pune based Bharat Forge had shown interest in buying the company. Bharat Forge did not respond to ET's comments.

The promoters of Shanthi Gears would get about INR 183 crore at current market prices for their 44% stake. However, the promoters may insist on a premium, pushing the deal value higher.

Source - Economic Times

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