CG Power & Industrial Solutions Limited has entered into an agreement to divest its controlling stake in its Indonesian subsidiary, marking a strategic exit from a non-operational venture. The company disclosed this development through a regulatory filing under SEBI Listing Regulations on March 5, 2026.

Transaction Details

The divestment involves the sale of CG Power's 51% stake in PT Crompton Prima Switchgear Indonesia (CPSI) to its existing joint venture partner PT Prima Layanan Nasional Enjiniring (PLNE). The transaction has been structured through CG International Holdings Singapore Pte Ltd. (CGS), which is a wholly owned foreign subsidiary of CG Power.

Subsidiary Background

CPSI was established as a joint venture between CGS and PLNE, with the companies holding 51% and 49% stakes respectively. The subsidiary is currently non-operational and contributed nil turnover, revenue, income, and net worth to CG Power during the last financial year. Prior to this share sale agreement, CPSI had already sold all its factory assets including land, plant and machinery, furniture, and equipment to PLNE in February 2026.

Financial and Strategic Impact

The company has indicated that there will be no adverse financial impact on its financial statements as a result of this transaction. The nominal consideration of IDR 1 reflects the non-operational status of the subsidiary and the prior asset disposal.

Key aspects of the transaction include:

• The buyer does not belong to the promoter or promoter group
• The transaction does not qualify as a related party transaction
• No scheme of arrangement is involved in the disposal

Regulatory Compliance

The divestment has been disclosed in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Upon completion of the transaction, CPSI will cease to be a subsidiary of CGS and consequently a step-down subsidiary of CG Power and Industrial Solutions Limited.

The transaction is subject to the fulfillment of terms and conditions by all parties as specified in the Conditional Shares Purchase Agreement. This strategic move allows CG Power to exit from a non-contributing asset while enabling its local partner to gain full control of the Indonesian entity.

CG Power & Industrial Solutions has announced the sale of factory assets belonging to its subsidiary PT Crompton Prima Switchgear Indonesia (CPSI) to Indonesian partner PT Prima Layanan Nasional Enjiniring (PLNE). The transaction, disclosed under regulatory filing requirements, involves the complete divestment of CPSI's manufacturing assets.

Transaction Structure and Details

CPSI has entered into a Heads of Agreement regarding Sale and Purchase Binding Agreement with PLNE for the disposal of all factory assets. The deal encompasses comprehensive manufacturing infrastructure including land, plant and machinery, furniture, and equipment.

Subsidiary Background and Operations

CPSI was established as a joint venture between CG International Holdings Singapore Pte Ltd., a wholly owned foreign subsidiary of CG Power, holding 51% stake, and PT Prima Layanan Nasional Enjiniring holding the remaining 49%. The subsidiary has been classified as a non-operating entity and treated as discontinued operations since FY 2022-23, with this status consistently disclosed in the company's financial statements.

Financial Implications and Use of Proceeds

The company has confirmed that no adverse financial impact is anticipated from this transaction. The IDR 155.00 billion consideration will be utilized by CPSI primarily to meet its external liabilities, with the remaining balance directed towards settling shareholder loans. This structured approach ensures the transaction maintains financial stability while enabling strategic asset optimization.

Regulatory Compliance and Disclosure

The asset sale has been disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The transaction does not qualify as a related party transaction, and the buyer PT Prima Layanan Nasional Enjiniring does not belong to the promoter group or any associated companies of CG Power And Industrial Solutions.