On October 17, Maruti Suzuki will contemplate issuing Suzuki Motors shares on a preferential basis

13 Oct 2023 , 02:06 PM

On October 12, Maruti Suzuki announced that, in lieu of cash, it would consider distributing shares as payment for the October 17 acquisition of Suzuki Motor Gujarat.

‘The Board of Directors of the Company is scheduled to be held on Tuesday, the 17th October 2023 to, inter-alia, consider and approve the issue of equity shares of the Company to SMC on a preferential basis for consideration other than cash, to discharge the consideration payable by the company for the acquisition of 100% equity stake of SMC in Suzuki Motor Gujarat Private Limited, subject to the approval…’ The automaker stated in a regulatory filing.

On July 31, Maruti Suzuki India told stock exchanges that the company’s board had accepted the termination of the contract manufacturing agreement with Suzuki Motor Gujarat Private Limited (SMG).

In addition, Maruti stated that subject to all legal and regulatory requirements, including the consent of minority shareholders, its board has decided to execute the option to purchase the shares of SMG from Japan’s Suzuki Motor Corporation (SMC).

Suzuki Motor Gujarat (SMG) is a wholly-owned subsidiary of Suzuki Motor Corporation, which oversaw the funding and implementation of Gujarat’s new manufacturing capacity.

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