Amtek Auto sells its SMI JV stake to Nippon Steel and Sumitomo Metal Corp

Debt-ridden Amtek Auto today said it has signed a share purchase agreement with Nippon Steel and Sumitomo Metal Corporation to sell its stake in its joint venture (JV) company SMI Amtek Crankshaft.

"Pursuant to the approval granted by the committee of creditors of Amtek Auto (AAL) for sale of all equity shares and preference shares held by AAL in SMI Amtek Crankshaft Pvt Ltd (SMI) to Nippon Steel and Sumitomo Metal Corporation (NSSMC), AAL has signed and executed share purchase agreement with NSSMC," Amtek Auto said in a regulatory filing.

Consequent to the approval of the resolution plan of AAL by the National Company Law Tribunal and on the coming into the effect of sale of AAL's 50 per cent stake in accordance with terms of SPA, SMI Amtek Crankshafts Private Ltd shall cease to be joint venture company of AAL, Amtek Auto said.

Amtek Auto is one of the 12 large insolvency cases which are undergoing insolvency resolution process with the National Company Law Tribunal (NCLT).