India's Sona group exits Sona Koyo Steering Systems

Indian auto-component group Sona will exit Sona Koyo Steering Systems Ltd (SKSSL) by selling its stake to JTEKT Corp Japan, the group said on Wednesday.

In a statement, the group said that Sona Autocomp Holding Ltd, led by Sunjay J. Kapur, had entered into an agreement with JTEKT Corp to sell its entire holding in SKSSL for Rs 419.28 crore at Rs 84 per share.

Sona Autocomp holds 25.12 per cent stake in SKSSL while JTEKT Corp holds 20.10 per cent.

The JTEKT Corp has also issued an open offer to acquire the 26 per cent stake held by public.

On completion of all the transactions-acquisition of stakes from Sona Autocomp and the public in full, JTEKT Corp holding in SKSSL will go up to 71.22 per cent.

The SKSSL makes steering systems for passenger cars and utility vehicles in India.

The transaction is subject to regulatory clearances by the Competition Commission of India and certain other conditions mentioned in the agreement, the statement added without specifying the other conditions.

Subject to receipt of approvals and completion of conditions mentioned in the agreement, the transaction is expected to close by the first quarter of financial year 2017-18.

--IANS

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