SAMIL to Acquire 81% Stake in Yachiyo's 4W Business, Deal Valued at 22.9 Billion JPY

5 Jul 2023 , 12:36 PM

Auto parts maker Samvardhana Motherson International (SAMIL) has announced its intention to acquire an 81 % majority stake in Yachiyo Industry’s four-wheeler (4W) business, a subsidiary of Honda Motor.

According to a regulatory filing by SAMIL, the acquisition deal is valued at 22.9 billion Japanese yen ($158.54 million). Currently, Honda owns a 50.4 % stake in Yachiyo, with the remaining shares held by the public.

As part of the agreement, Honda will initiate a tender offer to acquire the public stake in Yachiyo and retain ownership of Yachiyo’s two-wheeler (2W) business under Goshi Giken. SAMIL will acquire an 81 % stake in Yachiyo’s 4W business, while Honda will retain a 19 % stake.

SAMIL and Honda have entered into a strategic partnership with an 81:19 ratio, aiming to drive the business towards a strong and sustainable future, focusing on next-generation products and technologies.

The acquisition is subject to approvals from authorities in China, Brazil, the USA, and the RBI. Yachiyo Industry Co Ltd, listed on the Tokyo Stock Exchange, is engaged in the 4W and 2W businesses, manufacturing automobile parts such as sunroofs, fuel tanks, and resin products.

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