The country's largest two-wheeler maker Hero Honda today said its erstwhile Japanese promoter Honda Motor Co has exited the company completely after selling its 26% stake to a group firm of the Indian promoter family.
"... Pursuant to a share transfer agreement amongst the promoters of the company, Honda Motor Co, Japan, has transferred the whole of its shareholding/voting rights in the company to Hero Investments Pvt Ltd, forming part of the Indian promoter group of the company," Hero Honda said in a filing to the Bombay Stock Exchange (BSE).
"Consequent to the same, Honda Motor ceases to be a promoter within the meaning of the term under all applicable securities laws, including the Listing Agreement(s) with the stock exchanges," it added.
In December last year, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buyout the entire 26% stake of Honda in Hero Honda for Rs 3,841.83 crore.
"In view of the above, the entire promoter and promoter group of the company had been further reconstituted," the filing pointed out.
As per the new structure, Hero Investments Pvt Ltd (HIPL), one of the main shareholders in Hero Honda, has now increased its stake in the Munjals-promoted auto major to 43.33% from 17.33% as on December 31, 2010.
Earlier this month, Honda's two representatives on Hero Honda's board, Toshiaki Nakagawa and Sumihisa Fukuda, had resigned for the final break-up of the joint venture.
In March, the Cabinet Committee on Economic Affairs had approved a proposal for a Rs 4,500 crore foreign direct investment in HIPL by Bain Capital and Lathe Investment.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, a part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up a 29% stake in HIPL for Rs 3,650 crore.
Shares of Hero Honda were trading 0.81% up at Rs 1,631.45 apiece on the BSE in the afternoon today.
