Motherson Sumi Systems rose 3.02% to Rs 335.65 at 11:09 IST on BSE after the company said its board approved a proposal to make a voluntary public tender offer to acquire all the outstanding shares and option rights in Finland's PKC Group.
The announcement was made during trading hours today, 20 January 2017.Meanwhile, the BSE Sensex was down 106.76 points, or 0.39%, to 27,201.84.
On the BSE, so far 3.14 lakh shares were traded in the counter, compared with average daily volumes of 2.62 lakh shares in the past one quarter. The stock had hit a high of Rs 338.10 and a low of Rs 321 so far during the day.
The stock hit a 52-week high of Rs 358.55 on 2 August 2016. The stock hit a 52-week low of Rs 206.20 on 25 February 2016.
Motherson Sumi Systems announed that its board approved a proposal to make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC Group (PKC) having its headquartered in Helsinki, Finland and currently listed on the Nasdaq Helsinki stock exchange. The acquisition will be made through a wholly owned subsidiary of the company, to be setup for the purpose.
The board has also approved for signing of combination agreement between the company and PKC for the proposed transaction. Accordingly, combination agreement has been executed by the company.
PKC shareholders are being offered a cash consideration of 23.55 euros for each share/options in PKC representing an aggregate equity purchase price of approximately 571 million euros in an open tender offer. The transaction is expected to be completed by end of March 2017.
PKC is a global tier 1 supplier of wiring harness and associated components to original equipment manufacturers (OEMs) in the heavy & medium duty commercial vehicles and locomotive segments across North America, Europe, Brazil and China.
On a consolidated basis, Motherson Sumi Systems' net profit rose 26.17% to Rs 479.85 crore on 14.96% growth in net sales to Rs 10018.09 crore in Q2 September 2016 over Q2 September 2015.
Motherson Sumi Systems is one of the world's fastest growing specialized automotive component manufacturing company for original equipment manufacturers (OEMs). It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).
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