Kolkata, Dec 10 : State-owned diversified company Andrew Yule Thursday completed its 26 percent divestment in Phoenix Yule to Germany-based Contitech Group at Rs. 63 crore, a senior company official said here Thursday.

"The disinvestment process of Phoenix Yule is now over. We are handing over our share purchase agreement and finalisation of transaction of Phoenix Yule disinvestment," Andrew Yule chairman and managing director Kallol Datta said.

Phoenix Yule was formed in February 1999 after Andrew Yule decided to demerge its belting division and tied up with Contitech group company Phoenix AG as a joint venture partner, with the German company holding 74 percent in the new company.

The belting division was valued at Rs. 45.94 crore.

Andrew Yule ran into a financial crisis and was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 2003. A rehabilitation package was also drawn up, which the BIFR approved in October 2007.

Part of the Rs. 63 crore to be paid by the German firm will be used to repay government loans provided to Andrew Yule during the process of rehabilitation.

Phoenix Yule's turnover rose from Rs. 115.16 crore in 2000 to Rs. 321.79 crore in 2008. (IANS)