Samvardhana Motherson to buy 81% stake in Honda Motor arm Yachiyo

Samvardhana Motherson stocks hits 52-week high on Wednesday after the company announced that it will buy a majority stake of 81% in Japan-based auto-part maker Yachiyo Industry's four-wheeler (4W) business - a subsidiary of Honda Motor.

As per the press release, Samvardhana Motherson International Limited (“SAMIL”) via a 100% subsidiary of SMRP B.V. (SAHN B.V.) has entered into an agreement to acquire an 81% stake in Yachiyo’s 4W (Y4W) Business.

Motherson will form an 81%:19% strategic partnership with Honda Motor where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies.

Yachiyo Industry is a subsidiary of Honda Motor which comprises 4W and 2W businesses. As a part of the overall transaction, the 2W business (housed under Goshi Giken) will be transferred to Honda Motor before Motherson acquires an 81% stake in Yachiyo’s 4W business.

Post successful closure of this transaction, Motherson will become a partner of choice for Honda Motor. This transaction enables further diversification for Motherson in line with its 3CX10 strategy along with opportunities for the company to offer these products to other OEMs across the globe, the company said.

Meanwhile, the stocks of the company hit a 52-week high at Rs 92.50 per share on the BSE today.

Source: Media Reports

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