The decision to divest the stake, acquire Pembrill and merge its investment companies with Greaves Leasing Finance Ltd was taken at the company's board meeting on Wednesday, Greaves Ltd informed the Bombay Stock Exchange.

Greaves will divest its shareholding of 1.24 crore equity shares in the joint venture firm Crompton Greaves to Thapar Group. The company had earlier transferred the voting rights of these shares to Thapar, it said.

The company's board has also decided to acquire Pembrill Engineering Pvt Ltd and Pembrill Industrial & Engineering Company Pvt Ltd, manufacturers of fluid coupling and cluster gears, respectively. These acquisitions are subject to the completion of "satisfactory due diligence," it said.

Greaves would also merge its investment firms - Rajpath Investment Ltd and Carnation Investment Ltd - with GLFL, it said adding, GLFL is its 100 per cent subsidiary. The merger is effective from July one, 2003, subject to the mandatory and regulatory approvals, the statement said.

Greaves is also planning to close its subsidiary Sidvim AG, Liechtenstein, Vaduz, in which it holds 92 per cent stake.

The company has not been carrying out any operations for the last few years, and the closure would be subject to the Reserve Bank of India's approval, it added.