For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Motherson Sumi Shares Fall 7% On Major Group Restructuring Plan

|

Shares of major auto components manufacturer Motherson Sumi Systems Limited (MSSL) declined 7 percent on Friday to Rs 94.20 after the company's board approved a major reorganisation for its group companies.

Motherson Sumi Shares Fall 7% On Major Group Restructuring Plan
 

Its board has agreed to demerge MSSL's Domestic Wiring Harness (DWH) business into a new company, which will eventually be listed, with mirror shareholding as that of the company.

Shareholders will be allotted one share for every one share held in Motherson Sumi.

The company's board has also approved the merger of Samvardhana Motherson International Limited (SAMIL) the principal holding company of Motherson Group and promoter of MSSL, into MSSL, to consolidate 100 percent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV), as well as to bring all auto component and allied businesses in SAMIL under MSSL.

For every 10 shares held in SAMIL (of face value Rs 10 each), 51 shares of MSSL (of face value one rupee each) would be allotted. MSSL will also be renamed as Samvardhana Motherson International Ltd, the company informed.

"The reorganisation realigns interests of all its stakeholders and creates a simplified corporate structure for growth of businesses across product portfolios within auto components space and allied operations," the company said in a statement.

The transaction is likely to be completed by the second quarter of the fiscal year 2021-22 after necessary regulatory approvals.

"The simplification of group structure has been a long-standing request from our shareholders and the proposed reorganisation is a step in that direction. The transaction helps create strong business platforms under the Motherson umbrella which will enhance stakeholder value for the long term," said Vivek Chaand Sehgal, Chairman of MSSL.

Read more about: motherson sumi
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X