Maruti Suzuki opts for shares route to acquire 100% equity in Suzuki’s Gujarat ops


New Delhi, Oct 13 (IANS): Maruti Suzuki is planning to issue preferential shares, instead of cash, to its parent firm Suzuki Motor Corporation to acquire a 100 per cent stake in Suzuki Motor Gujarat.

The issue will be taken up at the company’s Board of Directors meeting, scheduled on October 17, India’s leading car maker said in a stock exchange filing on Thursday.

The decision saw the company’s share price going up in the morning session at BSE on Thursday.

Maruti Suzuki had informed the stock exchanges on July 31 that its board approved the termination of the contract manufacturing agreement with Suzuki Motor Gujarat Private Limited (SMG).

SMG entered into a contract manufacturing agreement to supply the entire production for sale to Maruti Suzuki. Maruti Suzuki now plans to end its contract manufacturing agreement by acquiring 100 per cent shares held by SMC.

The board had evaluated two available options for acquiring the SMC equity in SMG. While the first was payment in cash, the second one was the issue of MSIL equity shares on preferential allotment basis. It then settled for the latter option.

 

  

Top Stories


Leave a Comment

Title: Maruti Suzuki opts for shares route to acquire 100% equity in Suzuki’s Gujarat ops



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.