Maruti Suzuki India to Acquire 100% Shares of Suzuki Motor Gujarat

8 Aug 2023 , 12:38 PM

The board of Maruti Suzuki India (MSI) has given its green light for the acquisition of 100% shares of Suzuki Motor Corporation’s Suzuki Motor Gujarat (SMG), a crucial step that was communicated to the exchanges on August 8.

The board extensively assessed the proposition of acquiring Suzuki Motor Corporation’s (SMC’s) equity in SMG. After meticulous consideration, it determined that the issuance of MSI equity shares via preferential allotment would be highly beneficial for both the company and its minority shareholders.

In addition to the equity share issuance, an alternative option involving a cash payment was under examination. Ultimately, the decision settled on the equity deal, paving the way for SMG to become a wholly-owned subsidiary of Maruti Suzuki India.

The exact count of securities planned to be issued to SMC as part of the acquisition of 100% stake in SMG will be deliberated in an upcoming board meeting. This decision will be grounded on pertinent valuation reports.

The finer details concerning the subscription process, including the issue price for the securities and the post-allotment ownership of the investors, remain pending. These aspects will be determined in due course.

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