Samvardhana Motherson arm signs multiple agreements with Singapore’s BIEL Crystal

BIEL will invest in MECPL with 0.01% compulsorily convertible preference shares (CCPS), convertible to 10% equity, and potential to increase to 49% on a fully-diluted basis.

In addition to the investment, MECPL will receive technical assistance from BIEL and/or its affiliates. This implies that BIEL will not only provide financial support through investments in MECPL but also share technological expertise. The company will also provide support to enhance the capabilities of MECPL.

Under the pacts, SMISL retains the right to appoint a majority of directors in MECPL. BIEL has the right to nominate directors based on its shareholding such as one for less than 26%, two for 26%-40%, and one for 40%-49%, excluding SMISL's nominees.

MECPL must maintain the agreed shareholding ratio on a fully-diluted basis, including for future fundings. Failure to subscribe to future funding will result in dilution.

The company said that issuing equity shares or convertible securities to third parties requires consent from both BIEL and SMISL.

In September, Samvardhana Motherson International Ltd announced the inauguration of its wiring harness facility in Ras Al Khaimah (RAK), UAE. The facility is situated within the Ras Al Khaimah Economic Zone (RAKEZ), one of the seven emirates comprising the UAE.

At 10:55 AM, shares of Samvardhana Motherson International were trading 0.14% higher at ₹108.15 apiece on BSE.