Sumitomo Wiring Systems is likely to sell a 3.4 percent stake in Samvardhana Motherson International, a leading manufacturer of wiring harnesses, via a block deal, CNBC TV-18 reported on March 15, citing sources.
The floor price of the deal will be Rs 69.9 per share, persons privy to the development told the news channel. This will mark a discount of almost 9 percent as against the current stock price. The overall deal size will be $195 billion.
The Japan-headquartered Sumitomo Wiring Systems is one of the major investors in Samvardhana Motherson, holding a 17.55-percent stake in the company as of December 31, 2022.
Also Read | Nomura initiates buy rating on Samvardhana's demerged unit, sees potential upside of 19.2%
Samvardhana, counted amongst the top auto ancillories in India, had registered a 388 percent on-year growth in net profit to Rs 454 crore in the third quarter of FY23. The company's revenue during the period rose 25 percent on-year to Rs 20,226 crore.
In the trading session on March 15, the shares of Samvardhana settled at Rs 76.80 apiece at the BSE, which was two percent lower as against the previous day's close.
The block deal to offload Sumitomo Wiring's stake, as claimed in the CNBC TV-18 report, will come a month after its Samvardhana announced that its wholly owned subsidiary has agreed to buy out French automotive supplier Faurecia's entire stake in SAS Autosystemtechnik GmbH having an enterprise value of €540 million ($577.5 million).
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