Ashok Leyland sells off Czech truck making subsidiary

Ashok Leyland has announced that it has divested its entire stake of 100 percent ownership interest held in its Czech Republic subsidiary Avia Ashok Leyland Motors s.r.o. "to a strategic investor as part of restructuring of investment in subsidiaries".

Avia Ashok Leyland Motors has been part of Ashok Leyland since 2006 and used to manufacture trucks in the 6.5-12 tonnes GVW (gross vehicle weight) range. It may be noted that Ashok Leyland had stopped production at its Czech Republic subsidiary Avia’s plant in mid-2013, attributing it to the global economic slowdown.

The company has also divested its 48.5 percent equity stake held in Ashok Leyland Wind Energy, consequent to which its shareholding has come down from 60 percent to 11.5 percent.  As part of the transaction, the Company has also sold its windmill assets on slump sale basis.

As such, the company says, both Avia Ashok Leyland Motors and ALWEL cease to be its subsidiaries with immediate effect.