India (commonwealth) _ Samvardhana Motherson International (SAMIL) has announced that it will acquire an 81% ownership in Japan-based auto-parts manufacturer Yachiyo Industry’s four-wheeler (4W) business, which is a subsidiary of Honda Motor. The deal is worth 22.9 billion Japanese yen ($158.54 million), according to SAMIL’s regulatory disclosure to stock exchanges on Tuesday.
Honda presently holds 50.4 percent of Yachiyo, with the rest held by the general public. Honda would first purchase out the whole public stake in Yachiyo through a tender offer and retain Yachiyo’s two-wheeler (2W) business (housed under Goshi Giken) as part of the transaction. SAMIL will purchase an 81% ownership in Yachiyo’s 4W business, while Honda will own a 19% stake.
According to SAMIL, the company has formed an 81:19 strategic collaboration with Honda Motor, in which both partners will lead the company towards a strong and sustainable future and be fully equipped for next-generation goods and technology.
According to SAMIL’s exchange filing, the acquisition requires clearance from authorities in China, Brazil, the United States, and the Reserve Bank of India.
Yachiyo Industry Co Ltd, a publicly traded company on the Tokyo Stock Exchange, operates in the 4W and 2W sectors. It manufactures auto parts such as sunroofs, gasoline tanks, and resin goods. According to SAMIL’s announcement, Yachiyo’s firm had a book value of 59.2 billion yen as of March 31, reported sales of around 116 billion yen, and earnings before interest, taxes, depreciation, and amortization of 13 billion yen.
The company’s 4W division has created a number of value-added next-generation goods, including lighter plastic tailgates and type-IV hydrogen storage tanks. The 4W company employs around 3,200 employees in production and R&D centers in eight countries, including the United States, Brazil, Mexico, China, Japan, Thailand, Indonesia, and India.
According to the announcement, the agreement will allow SAMIL to offer its existing goods and penetrate new markets with Honda Motor, as well as increase its position in Japan.
