Mumbai, April 24 (IANS): Electricals company Crompton Greaves Ltd (CGL) on Friday said it will demerge its consumer products line from the existing business followed by a partial sell-out of the stakes in the consumer business and a fresh round of investment.

US-based equity firm Advent International (AI) has bought 34.37 percent stake in the consumer business of CGL for Rs.66 billion and Singapore-based investment firm Temasek will be investing in the demerged venture as "independent co-investor".

"CGCEL will be demerged from CGL into a stand-alone company and will consequently be listed on the National Stock Exchange of India and Bombay Stock Exchange. Thereafter, AI and Temasek will make an open offer for additional shares of CGCEL in compliance with takeover regulations," the company said in a statement.

The consumer business line of CGL is known as CG Consumer Electricals Ltd (CGCEL).

"Avantha is pleased to have signed a share purchase agreement for the sale of stake in CG's consumer business. Both Advent and Temasek have extensive financial, sector and operational expertise, and we believe they are well-positioned to support CGCEL in its next phase of growth," founder and chairman of Avantha Group, Gautam Thapar said.

Avantha Goup is the promoter of CGL.

"As a stand-alone company, CGCEL would be able to pursue more strategic goals and thus maximize value for all its stakeholders," Laurent Demortier, CEO and managing director of CG said.

The transaction is subject to closing conditions and receipt of all statutory and other approvals, including the successful demerger of CGCEL from CGL and approval from the Reserve Bank of India and Competition Commission of India.