Country's largest two-wheeler maker HeroMoto Corp's Netherlands-based subsidiary has offloaded 49 per cent stake in its Colombian operations to its US-based partner as part of the agreement inked in 2014.
"Our wholly-owned subsidiary HMCL Netherlands B.V. Has offloaded 49 per cent stake in the joint venture firm in Colombia to the US-based Woven Holdings LLC as part of the agreement inked in 2014," a source told PTI.
In July 2014, HMCL Netherlands B.V. Had formed a joint venture with Woven Holdings for sale, distribution and marketing of the company's products in Colombia.
As per the original agreement, the partners had agreed for equity realignment in their JV as and when production stabilises in the country.
In a recent regulatory filing, Hero MotoCorp said "the equity interests of the shareholders in the JVC (Colombia) have been re-aligned" following which it will hold 51 per cent stake and the remaining 49 per cent by Woven Holdings LLC, a company incorporated in accordance with the laws of of state of Delaware, US.
Hero MotoCorp through HMCL Netherlands BV had entered into an agreement in 2014 for sales distribution and marketing of the company's products in Colombia.
The joint venture is being implemented through a joint venture company -- HMCL Colombia SAS -- incorporated in Colombia.
Last year, Hero MotoCorp began operations at a new facility in Colombia, the company's first plant outside India, which has been built at an investment of USD 70 million.
The facility acts as an export hub for the region. It also produces ten top models at this plant. The unit, spread over 17 acres at Villa Rica in the state of Cauca, will have an initial production capacity of 80,000 units per annum.
This will be expanded to 1,50,000 units per annum in the next phase.
Hero MotoCorp shares today ended at Rs 2,943.40 apiece on the BSE, up 0.72 per cent from previous close.
