Rico auto to sell stake in FCC RICO to JV partner for Rs 495cr

Auto components maker Rico Auto Industries today said it would sell its 50 per cent stake in FCC RICO Ltd for Rs 495 crore to its Japanese partner FCC Co Ltd.
The board of Rico Auto has approved the divestment in the joint venture, the auto components maker informed the BSE.
"... The Board of Directors of Rico Auto Industries Ltd on September 25, 2014 has approved the divestment of the entire 50 per cent stake of the Company in FCC RICO Limited, the joint venture between the Company and FCC Co Ltd, Japan, to FCC Co Ltd, Japan or its affiliates, a FCC Group Company for gross consideration of Rs 495 crore," it said.

Rico Auto added: "The sale will be completed subject to completion of customary conditions precedent and such other regulatory conditions as may be required to be complied with as applicable".
Established in 1997, FCC RICO is 50:50 joint venture and is exclusively into manufacturing and supplying of automobile clutch assemblies to OEM's of two wheelers and four wheelers.
Its major client is Honda group companies. However, its customer list also includes auto firms as Suzuki, Yamaha, TVS, Piaggio and Bajaj.