Samvardhana Motherson to pick up 34% stake in Motherson Auto

5 Aug 2024 , 01:57 PM

Samvardhana Motherson International Ltd (SAMIL) announced that the board has approved acquisition of a 34% share in Motherson Auto Solutions Ltd (MASL) from Sojitz Corporation for ₹236.5 Crore.

According to a stock exchange filing, the Board of Directors of Samvardhana Motherson International Ltd (SAMIL) approved the acquisition of a 34% stake in Motherson Auto Solutions Ltd (MASL) by Samvardhana Motherson Innovative Solutions Ltd (SMISL), a 100% subsidiary of SAMIL, from Sojitz Corporation subject to satisfactory completion of conditions.

This transaction will be carried out by Samvardhana Motherson Innovative Solutions Ltd (SMISL), SAMIL’s wholly-owned subsidiary. Following the deal, which is expected to be completed by August 21, 2024, SMISL will hold 100% of MASL’s equity share capital, making MASL an indirect wholly owned subsidiary of SAMIL.

This transaction will give SAMIL complete control over MASL, which specialises in purchasing, developing, running, selling, renting, and leasing facilities, as well as managing industrial parks with required infrastructure.

MASL currently operates an industrial park in Chennai that covers over 270 acres of land. The park comprises necessary infrastructure such as internal roadways, storm drain systems, water supply, sewer systems, and electricity supply, all of which are leased to various enterprises.

At around 10.42 AM, Samvardhana Motherson was trading 8.86% lower at ₹176.12, against the previous close of ₹193.25 on NSE. The counter touched an intraday high and low of ₹188, and ₹176.25, respectively.

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