Moneycontrol Bureau
Shares of Amtek Auto climbed as much as 15.6 percent intraday Tuesday after its subsidiary Amtek Global Technologies secured a long-term loan of 235 million euro (over Rs 1,800 crore) from global investment firm Kohlberg Kravis Roberts (KKR).
As part of the definitive agreement inked between the two firms, KKR will provide Amtek Global Technologies (AGT) 235 million euro of long-term, flexible financing to replace its existing bridge loan and consolidate all of the company's existing debt.
"This facility will also act as a catalyst to help integrate Amtek Auto's existing international operations under the Singapore headquartered AGT," the companies said in a joint statement.
The Amtek Group, which has annual turnover of over USD 2.7 billion and manages 65 world-class facilities, produces components for passenger cars, commercial vehicles and two-and three-wheelers.
Gautam Malhotra, MD, Amtek India (another subsidiary of Amtek Auto), said with this he expects margins for acquisitions to improve to double-digits and reduce debt by USD 250-300 million over next year. The group’s average cost of debt stands at 8-9 percent.
According to AGT CEO Kunal Sabharwal, this financing is the beginning of a long-term partnership with KKR that will enable the company to continue to develop new and exciting opportunities in the automotive components market.
At 10:31 hours IST, the scrip of Amtek Auto jumped 14.53 percent to Rs 188 while its another subsidiary Amtek India was up 2.55 percent at Rs 96.55 on the Bombay Stock Exchange.
(With inputs from PTI)
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