homebusiness Newscompanies NewsAuto parts maker Uno Minda buys Kosei stake in Indian JVs for Rs 71 crore
Auto parts maker Uno Minda buys Kosei stake in Indian JVs for Rs 71 crore
Uno Minda will be entering into a technical licence agreement with Kosei Japan for 10 years. Shares of Uno Minda Ltd ended at Rs 462.15, down by Rs 11.65, or 2.46 percent on the BSE.
Shares of Uno Minda are trading at Rs 464, up 0.49 percent from the previous close on the BSE after the auto components maker on Monday, March 20, said its board has approved the acquisition of an 81.69 percent stake in Kosei Minda Aluminum Company Private Ltd and a 49.90 percent stake in Kosei Minda Mould Private Ltd from joint venture partner Kosei, Japan.
The enterprise values of Kosei Minda Aluminum Company and Kosei Minda Mould considered for the purpose of the transaction are Rs 60 crore and Rs 11 crore, respectively, the company said in an exchange filing.
Sunil Bohra, Group CFO, Uno Minda told CNBC-TV18 that "The three entities which is Minda Kosei, Kosei Minda Aluminium and Kosei Minda Mould, we will be acquiring and merging into Uno Minda limited and it will become the arm of division of Uno Minda. What it will bring on table is definitely a lot of a - cost synergies, because you will appreciate maintaining three legal entities, their compliances, management etc. there will be operational synergies and saving."
The acquisition is planned through a composite scheme of merger with Uno Minda Ltd through a swap of shares, the company said.
Uno Minda will be entering into a technical licence agreement with Kosei Japan for 10 years, which will be renewed thereafter with mutual consent of the parties, to ensure continuity of technical support, it added.
Nirmal K. Minda, CMD, Uno Minda Group, said, "Kosei has been a very important partner in our growth journey in the last few years where we have become the leading 4W alloy wheel player in the country facilitating self-reliance.
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 of Uno Minda Group, said, "We have been extremely positive on the 4W alloy wheel industry which is expected to grow around four times over the next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth.
The proposed transaction is one more step towards gaining a significant pie of this growing 4W Alloy wheel market, simplification of the group structure and to facilitate the achievement of economies of scale."
(Edited by : Shoma Bhattacharjee)
First Published: Mar 20, 2023 7:41 PM IST
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