CNBC-TV18 Newsbreak on Samvardhana Motherson Promoter Sumitomo Wiring Systems selling 3.4 percent stake in the company via block deals today, is confirmed. As per the information disclosed to exchanges, Sumitomo Wiring Systems has sold 3.4 percent stake through ‘bulk deal’ as part of global deleveraging strategy to fund partial debt prepayment of SWS group in the rising interest environment.
Sumitomo Wiring Systems along with HK Wiring held 17.72 percent stake in Samvardhana Motherson and 25.34 percent stake in Motherson Sumi Wiring. With today’s block deals, the holding of Sumitomo Wiring Systems in Samvardhana Motherson will reduce to 14.32 percent while its shareholding in Motherson Sumi Wiring will remain unchanged.
Sumitomo Wiring Systems will continue its long-standing agreement with Motherson Wiring as a principal joint venture partner and will keep supporting the company on evolving technologies and technical know-how, says Samvardhana Motherson.
Sumitomo Wiring Systems was first JV partner of Motherson and its promoter of Samvardhana Motherson since its IPO in 1993. This is a first dilution of Sumitomo Wiring Systems in almost four decades. “Sumitomo Wiring Systems firmly believes that Samvardhana Motherson continues to be an aspiring entity with a robust global growth potential ahead. Accordingly, Sumitomo Wiring Systems will remain a promoter.”
Samvardhana Motherson stock has slipped more than 10 percent following the block deals of 4 percent equity worth Rs 1,700 crore in the first hour of trade in Thursday’s session. The other group company, Motherson Wiring is flat around the level of Rs 48 per share.
