The company said in its press statement that the acquisition will be carried out jointly with group company Samvardhana Motherson Finance.

It said, Cross industries would continue to hold a 20 per cent shareholding, according to the statement.

The acquisition would be carried out through a special purpose vehicle in which MSSL will hold 51 per cent and Samvardhana Motherson Finance Ltd will hold a 49 per cent share, it said.

This SPV would acquire 80 per cent of the shares of Peguform Group, while 20 per cent of the shares would remain with the existing shareholder, Cross Industries AG.

"This (the acquisition) would also include 50 per cent holding in Wethje Carbon Composite, which is a part of Cross Industries," it said.

These acquisitions are subject to regulatory and other approvals, as may be necessary in this regard.

Commenting on the occasion, V C Sehgal, Chairman and MSSL Vice-Chairman Samvardhana Motherson Group (SMG) said: "Apart from the synergies that SMG would bring to the acquired entity, the product range of Peguform complements our polymer product range in India. There are obvious synergies in terms of customers served which will further strengthen the position of the group as a global module supplier to automotive OEMs."

It is expected that the deal will be completed by Setember-October. Sehgal added the acquisition would be funded through debt, for which it has tied up with a consortium of Indian banks.

Peguform has a strong presence in Europe, it supplies to major premium German brands. Meanwhile Cross Industries AG is an Austrian industrial holding company with a strategic and operative focus on the automotive sector.

OneIndia Money