UNO Minda said that its board has approved the acquisition of 81.69 % stake in Kosei Minda Aluminum Company (KMA) and 49.90% stake in Kosei Minda Mould (KMM) from joint venture partner Kosei, Japan.
The acquisition is planned through composite scheme of merger with Uno Minda through swap of shares. The enterprise value of KMA and KMM considered for the purpose the transaction is approximately Rs 60 crore and approximately Rs 11 crore, respectively.
While merger will be subject to various statutory authorities, Uno Minda will start managing the business and operations of these two entities with effect from 1 April 2023.
The company will also be entering into technical license agreement with Kosei Japan for 10 years and shall be renewed thereafter with mutual consent of the parties, to ensure continuity of technical support.
Nirmal K Minda, CMD, Uno Minda Group said; "Kosei has been a very important partner in our growth journey in last few years where we have become the leading player in 4 W Alloy wheel player in the country facilitating self-reliance.
Also Read
The acquisition will further consolidate Uno Mind's leadership position in the segment. We are confident that we will scale this business to newer heights."
Sunil Bohra, CFO, Uno Minda Group said, We have been extremely positive on 4W Alloy wheel industry which is expected to grow around 4 times over next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth.
The proposed transaction is one more step towards gaining significant pie of this growing 4W Alloy wheel market, simplification of the group structure and to facilitate achievement of economies of scale.
Uno Minda (formerly Minda Industries) is one of the leading manufacturers of automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems and alloy wheels.
The company's consolidated net profit rose 60% to Rs 162 crore on 34% increase in revenue from operation to Rs 2,915 crore in Q3 December 2022 over Q3 December 2021.
The scrip was up 0.01% to currently trade at Rs 462.20 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
