Mumbai: The board of directors of Blue Star, in its meeting held today, has approved a proposal for the sale of 24,98,824 equity shares of Rs 10 each held by the company in Yokogawa Blue Star to Yokogawa Electric Corporation, Japan, at a price of Rs 67 per share amounting to Rs 16,74,21,208.

Blue Star is a leader in the field of central air-conditioning and commercial refrigeration, while Yokogawa Blue Star enjoys a fine reputation in the field of industrial automation.

Yokogawa Electric Corporation had expressed an interest in increasing its holding in Yokogawa Blue Star almost three years ago. Recent negotiations with Blue Star successfully concluded in an agreement, which has been approved by the respective boards of the two companies.

Says Blue Star chairman and CEO Ashok M Advani: “We do not find any synergy between air-conditioning and industrial automation which Yokogawa specialises in. Hence our decision to exit from the joint venture. I must say that we have had an excellent partnership with Yokogawa Electric Corporation for 16 years. I am confident that both Blue Star and Yokogawa will benefit from the proposed transaction, and grow in their core businesses in the coming years.”