Mumbai, Mar 21: Auto components maker Uno Minda Ltd on Monday said its board has approved the acquisition of a 81.69 per cent stake in Kosei Minda Aluminium and a 49.90 per cent stake in Kosei Minda Mould from JV partner Kosei, Japan.
The move will help the company consolidate its 4W alloy business, Uno Minda said in a statement.
The acquisition is planned through a composite scheme of merger with Uno Minda Ltd through a swap of shares.
The enterprise value of the two entities — Kosei Minda Aluminium and Kosei Minda Mould — considered for the purpose, the transaction stands at Rs 60 crore and around Rs 11 crore, respectively, it said.
“Kosei has been a very important partner in our growth journey in the last few years …The acquisition will further consolidate Uno Mind’s leadership position in the segment,” Nirmal K Minda, Chairman and Managing Director of Uno Minda Group, said.
According to the company, while the merger will be subject to various statutory authorities, Uno Minda will start managing the business and operations of these two entities with effect from April 1 this year.
The company said it will also be entering into a technical license agreement with Kosei Japan for a period of 10 years, which will be renewed further with mutual consent of the parties, to ensure continuity of technical support.
“We have been extremely positive on the 4W Alloy wheel industry which is expected to grow around 4 times over next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth,” said Sunil Bohra, CFO at Uno Minda Group.
