Phoenix AG to buy Andrew Yule's stake in Phoenix Yule

German company Phoenix AG will buy Andrew Yule's 26 per cent stake in Phoenix Yule -- its joint venture with the public sector heavy engineering firm as a part of the latter's disinvestment process. Andrew Yule Chairman and Managing Director Kallol Datta said that Phoenix would buy Yule's stake in the joint venture. "Phoenix has agreed to exercise the first right of refusal. It is now waiting approval of the Cabinet," Datta said. Phoenix AG presently holds 74 per cent in the JV, while the remaining is held by Yule. Datta said the divestment of another company -- Tide Water Oil -- was also at an advanced stage. He, however, regretted that Andrew Yule had not been able to complete the three disinvestment exercises within the current financial year. As per the BIFR (Board for Industrial and Financial Reconstruction) package, Andrew Yule was to sell its holdings in DPSC Ltd, Phoenix Yule and Tide Water Oil during 2008-09, the proceeds of which would go towards repayment of Rs 87 crore bridge loan to the government. "It is extremely dissatisfying that the disinvestments could not happen. But the work done in the last nine months was commendable", Datta said. The company's operations would not be affected since the sell offs were meant for returning money to the government, he said. Andrew Yule holds 26 per cent in Tide Water Oil. The DPSC sale process was halted due to legal complications involved. Commenting on the performance of the company this financial year, Datta said Andrew Yule was expected to make a handsome profit. The company's networth, which was still negative, was also expected to become positive in the next fiscal, he said. As a part of the revival package, Andrew Yule was also required to spin off the electrical and engineering businesses into two separate companies. For this purpose two shell companies, Yule Engineering and Yule Electrical, were required to be floated. Datta, however, refused to comment on this issue. After spinning off the two units, Andrew Yule would primarily focus on the emerging tea business. The entire revival package of Andrew Yule was pegged at Rs 112 crore.