Amtek Auto asset sale finds no takers; Brexit, valuations weigh

Swaraj Baggonkar Moneycontrol

Brexit, steep valuations and an unfavourable sale method adopted by debt-ridden Amtek Auto have become the main reasons behind the company’s unsuccessful bids to sell Tekfor, its German division.

Desperate to get rid of the huge debt of more than Rs 13,000 crore, Delhi-based Amtek has been trying to sell its forging company since October 2015 without much success. As many as seven bids were received by Amtek by October last year but the asking price, which is believed to be in the range of USD 800 million-USD 1 billion has disappointed the bidders. Britain's decision to exit from the Europe Union also hit the sale process. Amtek had bought the German company in 2013.

Amtek’s asset sale comes on the heels of Germany’s Hay Group going to a Japanese company for a knocked-down price last year. The Hay Group, which is a main rival of Amtek Auto's, was sold for just USD 563 million, nearly half the asking price sought by Amtek.