Samvardhana Motherson to pick up 95% stake in Atsumitec

6 Dec 2024 , 01:42 PM

Samvardhana Motherson Ltd., an auto components maker, has announced that it announced acquisition of a 95% stake in Japan-based Atsumitec for $57 million in cash.

In an exchange filing, Samvardhana Motherson informed that it is expecting to complete the transaction by the first quarter of the following fiscal year.

As part of the transaction, Atsumitec will establish a Special Purpose Company (SPC) to purchase a 51.99% stake from existing shareholders, with a minimum of 48.02% required.

As of now, the SPC has acquired 31.75% of the 51.99% holding from current owners. Samvardhana Motherson stated that if the minimal criteria is not met, the deal will not proceed. 

Following this, Samvardhana Motherson will acquire the shares from the SPC after receiving the necessary regulatory clearances. This is expected to be completed by the fourth quarter of this fiscal year. The transaction will make Samvardhana Motherson the largest stakeholder in Atsumitec, as well as provide it with consolidation rights and the power to reconstitute Atsumitec’s board.

Samvardhana Motherson said that on the day of buyback it would acquire an additional 49% share in Atsumitec Indonesia from Honda Motor. 

At around 1.27 PM, Samvardhana Motherson was trading 1.56% higher at ₹169.60, against the previous close of ₹167 on NSE. The counter touched an intraday high and low of ₹174.57, and ₹166.53, respectively.

For feedback and suggestions, write to us at [e-mail]