Chennai: Ashok Leyland Ltd, the country’s second-largest maker of trucks and buses, is in talks with potential buyers to sell its German subsidiary Albonair GmbH, which develops emissions treatment systems and products.

“We are pragmatic about selling non-core assets and have started due diligence in selling Albonair," said Gopal Mahadevan, chief financial officer of the company.

In a January 2013 earnings conference call, Ashok Leyland mentioned that it was looking at selling stake in Albonair, a non-core asset, to reduce debt.

Mahadevan said the board of directors had approved the proposal only a few months ago after which an investment bank was hired to scout for buyers.

He declined to say how much the company plans to raise by selling Albonair.

It has invested €46 million in the unit it acquired in 2008.

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