Sojitz Corp to sell 1.9% stake in Samvardhana Motherson through block deal

Japan-based Sojitz Corp announced on October 17 that it will sell 1.9 percent stake in auto component major Samvardhana Motherson through a block deal, CNBC-TV18 reported quoting sources.

The floor price for the Samvardhana Motherson block deal is Rs 64.36 per share, while the deal size for the Sojitz Corp share sale in Samvardhana Motherson has been fixed at Rs 824 crore.

Formerly Motherson Sumi, shares of Samvardhana Motherson on Monday ended flat with a negative bias at Rs 69.20 apiece on the BSE, down 0.29 percent.

The Motherson Group recently reorganised itself and changed the name of Motherson Sumi Systems Limited (MSSL) to Samvardhana Motherson International Ltd (SAMIL).

Notably, last month, the Samvardhana Motherson Automotive Systems Group BV (SMRPBV), through its vision systems division, entered into an agreement with Ichikoh Industries (a subsidiary of Valeo SE) in Japan to buy 100 percent of its mirror business at an enterprise value of 5.2 billion yen. The proposed deal is expected to be closed in six to eight months subject to certain conditions.

“The transaction includes Ichikoh’s mirror business (development and manufacturing of automotive mirrors and associated products) in Japan and China, catering largely to Japanese original equipment makers (OEMs). The target business reported revenues of 15.8 billion yen in 2021. With this transaction, Motherson will add three manufacturing facilities across Japan and China and 260 patents to its intellectual property portfolio,” SMRPBV said in a filing on September 26.