Samvardhana Motherson International Ltd to acquire balance stake in JV

The Board of Directors of Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) (the "Company") at their meeting held on March 16, 2023 approved to acquire remaining 50% stake of Fritzmeier Motherson Cabin Engineering Private Limited from F Holdings GmbH, Austria, subject to satisfactory completion of conditions precedent. Post completion of the transaction, Fritzmeier Motherson Cabin Engineering Private Limited (FMCEL) will become wholly owned subsidiary of the Company.

FMCEL is engaged in development, manufacture, and sale of operator cabins, cover assemblies and fabrications for various off highway applications.

The Company is a profitable joint venture in India between Samvardhana Motherson International limited ("SAMIL") and F Holdings GmbH, Austria ("JV Partner") from 2007 onwards with a 50-50 shareholding structure.

Post completion of the transaction, SAMIL will own 100% of the Company.

The Target business is housed under Precision Metals and Modules division which is a part of Emerging Businesses vertical of SAMIL.

The off highway vehicles (agricultural, construction etc.) industry in India is poised for significant growth and post completion of the transaction, entire benefits of growth will fully accrue to SAMIL.

On a 9M FY23 annualized basis the Target business revenue has grown by ~70% yoy.

The purchase consideration to be paid is INR 110.7 Cr for acquisition of 50% stake of JV partner.

Shares of Samvardhana Motherson International Limited was last trading in BSE at Rs. 68.45 as compared to the previous close of Rs. 76.80. The total number of shares traded during the day was 27029668 in over 44771 trades.

The stock hit an intraday high of Rs. 72.00 and intraday low of 66.05. The net turnover during the day was Rs. 1890379566.00.

Source : Equity Bulls

Keywords

SamvardhanaMothersonInternational INE775A01035 517334 StakeAcquisition FritzmeierMothersonCabinEngineering FHoldingsGmbH JVPartner