 "stake sale, shares, investors, investment")
Samvardhana Motherson International Limited (SAMIL) on Tuesday said it would purchase an 81 per cent stake in Honda Motor’s component maker subsidiary Yachiyo Industry Co. for Rs 1,059 crore.
The Noida-based automotive (auto) parts maker said it expected this deal to close by the first quarter of 2024-25.
Yachiyo manufactures sunroof systems, fuel tanks, as well as exterior resin parts like bumpers and rear-side windows for pickup trucks.
This is SAMIL’s second global acquisition of 2023. It had in February announced it was buying SAS Autosystemtechnik GmbH & Co.KG (SAS) — which manufactures auto cockpit modules — from French company Faurecia for Rs 4,790 crore.
Yachiyo manufactures components for two-wheelers and four-wheelers. Yachiyo’s two-wheeler business will be transferred to Honda before the aforementioned deal with SAMIL is consummated.
Yachiyo’s four-wheeler business, wherein 81 per cent will be acquired by SAMIL, employs about 3,200 employees at its 13 manufacturing facilities and three research and development centres across eight countries, including the US, Brazil, Mexico, China, Japan, Thailand, Indonesia, and India.
“The equity value of the business is JPY (Japanese yen) 23 billion (Rs 1,307 crore) for a 100 per cent stake,” said SAMIL.
Vivek Chaand Sehgal, chairman, SAMIL, said, “This acquisition is an important landmark for Motherson as we are honoured to be hand-picked by Honda San for a global partnership. We will give our best to live up to the trust bestowed upon us by Honda San.”
“These new product segments are in line with our increasing content per car strategy as well as our customer-centric approach. We believe this business will be highly synergistic with Motherson’s existing portfolio as we see ample opportunities to grow this new business globally by leveraging our global relationships with auto original equipment manufacturers. We are looking forward to the exciting times ahead,” he added.
