Motherson Sumi acquires Finnish PKC Group for Rs 4,300 crore
The company in a regulatory filing said that this move will help them to expand its footprint significantly in American and European commercial vehicle market segment.
Motherson Sumi Systems Ltd. (MSSL) on Monday announced that it has acquired Finnish auto component company, PKC Group Plc. for Euro 571 million (Rs 4364.724 crore).
The company in a regulatory filing said that this move will help them to expand its footprint significantly in American and European commercial vehicle market segment.
Commenting on the deal, Vivek Chaand Sehgal, MSSL, said, "We are very happy to announce that we have successfully acquired 93.75%* shareholding in PKC Group which has significant market presence in the American and European markets with major growth plans in China."
The company has also obtained all pre-closing regulatory approvals for the transaction prior to completion of the tender offer.
On January 19, 2017, the company had announced that MSSL and PKC entered into a combination agreement pursuant to which MSSL launched a voluntary recommended public tender offer for the acquisition of all the issued and outstanding share capital and voting rights of PKC Group Plc (PKC).
Shareholders of PKC, which had a topline of Euro 846 million during calendar year 2016 and Adj. EBIDTA of Euro 64.4 million were offered EUR 23.55 per share in tender offer. Total consideration paid for this acquisition is approximately Euro 571 million, the company said.
Moreover, as per the filing, this is the 16th acquisition by the company since 2002. In FY15-16 its turnover reached $5.7 billion. The company aims to move towards the target of $18 billion along with business philosophy of "3CX15", which means exposure to any country, component or customer should not be more than 15% of our total turnover by FY 2020.
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