'Sona paid Rs 620 cr to buy German firm'

Sona Okegawa Precision Forgings, the Sona Group company, is likely to have paid Rs 620 crore to acquire Germany's ThyssenKrupp Prazisionsschmiede earlier this year, according to an industry official.

The deal was announced in January without detailing the buyout amount. Sona Group Chairman Surinder Kapur has been refusing to comment on the deal size.

In January, Kapur had said the acquisition would be funded through a combination of debt and equity, without giving any further detail.

"Whatever funding exercise we take up, we will ensure there is no impact on the Indian company," he had said, adding that Thyssenkrupp was a debt-free company.

Post-acquisition, Sona Okegawa has become the largest precision forgings company in the world. ThyssenKrupp Prazisionsschmiede, a subsidiary of German steelmaker ThyssenKrupp Technologies, posted sales of Rs 1,740 crore in 2006-07. It has three plants in Germany and one in the US to make forging equipment for the automobile industry.