 "Hero MotoCorp acquires 60% in JV with Magneti Marelli")
Country's largest two-wheeler maker Hero MotoCorp today said it has acquired 17.49 lakh shares, constituting around 60% stake, in its joint venture with Italian firm Magneti Marelli.
Financial details were not immediately available.
Hero MotoCorp has subscribed to a total of 1,749,999 equity shares of face value Rs 10 of 'HMC MM Auto Ltd' constituting 60% shareholding in the JV company, Hero MotoCorp said in a filing to the BSE.
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"The purpose of the joint venture is to, amongst others, sell, distribute and market complete two wheeler fuel injection systems or components parts thereof," it added.
Earlier this month, the partners--Hero Motocorp and Magneti Marelli had announced plans to invest $27 million in the JV over the next ten years. The JV is targeting sales of around $100 million in the first five years.
The partners had said they would invest $8.5 million in ratio of 60:40 JV over a period of three years.
Magneti Marelli, which designs and produces advanced systems and components for the automotive industry around the globe, reported a turnover of 5.8 billion Euros in 2012.
Shares of Hero MotoCorp today closed at Rs 2,169.75 apiece on the BSE, down 1.51% from its previous close.