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Business News/ Companies / News/  Samvardhana Motherson to acquire Fritzmeier Motherson Cabin for 110.7 cr
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Samvardhana Motherson to acquire Fritzmeier Motherson Cabin for ₹110.7 cr

Fritzmeier Motherson Cabin Engineering Pvt Ltd is a joint venture between Samvardhana Motherson and F Holdings.

Samvardhana Motherson said post acquisition Fritzmeier Motherson Cabin Engineering Pvt Ltd will become wholly owned subsidiary of it Photo: Anindito Mukherjee/ReutersPremium
Samvardhana Motherson said post acquisition Fritzmeier Motherson Cabin Engineering Pvt Ltd will become wholly owned subsidiary of it Photo: Anindito Mukherjee/Reuters

Samvardhana Motherson International Ltd (SAMIL) on Thursday announced that the board has approved the acquisition of remaining 50 per cent stake of Fritzmeier Motherson Cabin Engineering Private Limited from F Holdings GmbH, Austria.

The acquisition is for a cash consideration of for 110.7 crore.

Fritzmeier Motherson Cabin Engineering Private Limited is a joint venture in between Samvardhana Motherson International limited and F Holdings GmbH, Austria from 2007 onwards with a 50-50 shareholding structure. The company said post acquisition Fritzmeier Motherson Cabin Engineering Pvt Ltd will become wholly owned subsidiary of it.

“The Board of Directors of Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) (the “Company") at their meeting held on March 16, 2023 approved to acquire remaining 50% stake of Fritzmeier Motherson Cabin Engineering Private Limited from F Holdings GmbH, Austria, subject to satisfactory completion of conditions precedent. Post completion of the transaction, Fritzmeier Motherson Cabin Engineering Private Limited will become wholly owned subsidiary of the Company," said Samvardhana Motherson in its filing.

The transaction is expected to be closed on or before 31 March 2023.

“The off highway vehicles (agricultural, construction etc.) industry in India is poised for significant growth and post completion of the transaction, entire benefits of growth will fully accrue to SAMIL. On a 9M FY 23 annualized basis the Target business revenue has grown by 70% yoy." the filing added.

 Samvardhana Motherson International Ltd (SAMIL) promoter Sumitomo Wiring Systems (SWS) sold 3.4 per cent stake in the company through block deals to fund partial debt repayment. The floor price for the deal is fixed at 69.9, which is about 9 per cent discount to Wednesday's closing price of 76.25. The overall deal size will be $195 billion.

On Thursday, the company's scrip ended 10.87 per cent down at 68.45 on BSE.

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Published: 16 Mar 2023, 10:25 PM IST
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