Tuesday, 19 July 2011

Motherson Group to pay Rs 890 crore for 80% in Germany's Peguform



Auto component-maker Motherson Sumi Systems Ltd (MSSL) on Monday said the Samvardhana Motherson Group will pay a total of 141.5 million (about 890 crore) to acquire an 80% stake in Germany's Peguform Group from Cross Industries AG. 

Last week, MSSL had announced that the acquisition would be jointly carried out with another group firm, Samvardhana Motherson Finance Ltd (SMFL). 

"The total share consideration for this transaction is 141.5 million, of which MSSL's share shall be 72.165 million (about 450 crore)," MSSL said in a statement.

A special purpose vehicle (SPV) in which MSSL will hold a 51% stake and Samvardhana Motherson Finance Ltd the remaining 49% has been formed for the acquisition. The SPV will acquire 80% of the shares of Peguform Group, while 20% of the shares will remain with the existing shareholder, Cross Industries AG. 

"MSSL proposes to raise a loan overseas to finance this transaction," the statement said. The deal is expected to be completed by the end of September, 2011, by which time all closing conditions, including regulatory approvals as applicable, are expected to be received, it added. 

The acquisition would include 50% holding in Wethje Carbon Composite, which is a part of Cross Industries. 

Peguform is a leading full service supplier of differentiated high quality interior and exterior products for the automotive and related industries. 

It is into the development, manufacture and distribution of bumper systems, plastic components for vehicle exteriors, vehicle cockpits, dashboards and vehicle interior trims.

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