Sumitomo Wiring sells 3.4 pc stake in Samvardhana Motherson for Rs 1,612 cr
Japan's Sumitomo Wiring Systems on Thursday offloaded a 3.4 per cent stake in Samvardhana Motherson International for Rs 1,612 crore through an open market transaction.
Sumitomo Wiring Systems (SWS) is a promoter entity in Samvardhana Motherson International (SAMIL).
According to the bulk deal data available with the National Stock Exchange (NSE), Sumitomo sold 23 crore shares of the firm.
The shares were disposed of at an average price of Rs 70.1 apiece, taking the transaction value at Rs 1,612.30 crore.
Copthall Mauritius Investment Ltd and Societe Generale were the buyers of the shares.
In a regulatory filling on Thursday, SAMIL said, ''Today, SWS...sold a 3.4 per cent shares held in SAMIL through bulk deal at stock exchange in India as part of global deleveraging strategy to fund partial debt prepayment in the rising interest environment''.
SWS and its wholly-owned subsidiary HK Wiring Systems Ltd (HKWS) jointly held 17.72 per cent shares of the company.
With the above sell-out, SWS' holding in SAMIL has come down to 14.32 per cent, it added.
SWS was the first JV partner of Motherson and promoter of SAMIL since its IPO in 1993.
This is first stake dilution of SWS in almost four-decade-long relationship.
The domestic firm said SWS firmly believes in SAMIL with a robust global growth potential ahead.
Accordingly, SWS will remain a promoter in SAMIL, it added.
SAMIL is a leading automotive supplier for OEMs. It supports its customers from more than 300 facilities across 41 countries, with a team of over 1,50,000 professionals.
The group recorded revenues of USD 10.5 billion for FY22.
Shares of SAMIL closed 10.87 per cent down at Rs 68.45 apiece on BSE and Rs 68.70 per share on the NSE.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)