Specialised automotive component manufacturer Motherson Sumi Systems (MSSL) has launched a bid to acquire Finland-based wiring harness major PKC Group through an open offer worth Euro 571 million (more than $600 million or more than Rs 4,100 crore).
According to the announcement made late on Thursday night, MSSL's Board of Directors approved a proposal to launch a voluntary, recommended public tender offer for the acquisition of the outstanding share capital and voting rights of PKC Group Plc (PKC), Finland.
The company informed that it has entered into a combination agreement for the proposed transaction with PKC.
"MSSL will make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC," the company had informed the stock exchanges through a regulatory filing made late on Thursday night.
The shares of PKC are listed on the Nasdaq and Helsinki stock exchange.
"PKC shareholders are being offered a cash consideration of EUR 23.55 for each share/options in PKC representing an aggregate equity purchase price of approximately EUR 571 million in an open tender offer," the regulatory filing said.
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"The transaction is expected to be completed by end of March 2017."
MSSL which is one of the largest auto ancillary in India was established in 1986 through a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).
Currently, the company has a presence in 26 countries across six continents. It reported a turnover of $5.7 billion for FY16.
--IANS
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