Sundram Fasteners sells stake in German JV

Sundram Fasteners Limited, a part of TVS Group, has transfered majority of the shares it held in its joint venture with Germany-based Windbolt GmbH to its partner Wolfgang Naumann for a consideration of Euro 19,999.

The move comes at a time when Winbolt has filed a petition for insolvency in accordance with the German Laws in view of the uncertain future outlook without any sing of improvement in German market and the current negative order book situation, said the company in a regulatory filing.

As a result of the transaction, the shareholding of Sundram Fasteners in Windbolt has been reduced from 24.99 per cent to 9.9998 per cent and consequently, latter ceased to be an associate of the company, said the Chennai-based firm. The contribution of Windbolt GmbH for the year ended December 31, 2014 to the consolidated turnover of the company is 0.069 per cent (Rs 2.16 crore) and profit before tax is -1.81 % (a loss of Rs 3.29 crore) as at March 31, 2015, it added.

It has initiated its involvement and claim assertion process as per local laws of Germany through its legal advisors. Currently, the loss is not determinable. However, it is expected that it will not be material, said the company.

"There will not be any benefit to; the Promoter / Promoter Group / Group Companies as a result of aforementioned transfer of shares. The company and its Joint Venture Partner, Mr Wolfgang Naumann in Windbolt GmbH are only concerned in the transaction," said the company in a filing with the exchanges.

The company had entered into Joint Venture (JV) during the year 2011 for manufacture of bolts for the wind energy industry in Germany with an investment of Euro 33,332 constituting 24.99 per cent equity stake in the total capital of Euro 133,332, it added.