Fiem Industries exits from JV company, Aisan Fiem Automotives; Stock ends 5% lower

14 Feb 2022 , 03:40 PM

Board of Directors of Fiem Industries Limited on February 14, 2022, have decided to exit from Joint Venture Company (JV Company) – Aisan Fiem Automotives India Pvt. Ltd.

Accordingly, in terms of the Joint Venture Agreement (JV Agreement), FIEM Industries Limited will, in the exercise of the put-option rights reserved under the JV Agreement, offer the entire shares held by the Company in the JV Company to the other Joint Venture Partner(s) for purchase at face value or fair market value, whichever is higher.

FIEM Industries Limited had invested Rs26 crore for acquiring 26% shareholding in the JV Company. The exit process is expected to be completed within first quarter of next financial year.

Fiem Industries Ltd ended at Rs1,058.90 per share down by Rs55 or 4.94% from its previous closing of Rs1,113.90 per share on the BSE.

JV Agreement was executed to form JV Company and to set-up manufacturing facility for Fuel Injection System for two-wheelers and three-wheelers for Indian market. Accordingly, JV Company, Aisan Fiem Automotives India Pvt. Ltd. was formed and manufacturing facility set-up in FY19.

Fiem Industries Ltd. had nominated Mr. J.K. Jain as nominee Director at the Board of JV Company. He will resign in due course on the Company divesting its shareholding in the JV Company/ Termination of JV Agreement.