Autoline to acquire 51% in Belgium's Stokota

Company to pay Rs 66.80 crore in cash and equity.

Auto components manufacturer, Autoline Industries Ltd (Autoline), plans to acquire 51 per cent stake in Belgium-based Stokota NV in a cash and equity deal of Rs 66.80 crore.

A communication from Autoline issued on Monday said the two companies had signed a memorandum of understanding that provides for Autoline?s majority control of the Belgian company.

The Rs 180-crore Autoline has an integrated engineering tool design and manufacturing facility in Pune and is focused on manufacturing of sheet metal assemblies and formed tubular products for the automobile industry.

Autoline has an existing relationship with Stokota and makes tippers as per the latter's design and specifications for the India market.

Stokota has plants in Belgium, France, Poland, India and China and makes special purpose vehicles including tippers, tipper trailers, flat-bed and skeleton trailers, cement bulkers and a range of tankers.

Stokota's contribution to Autoline's topline after the takeover would be Rs 250 crore as the combined revenues for the year 2007-08 is projected to be close to Rs 700 crore, the communication said.

Investment by Autoline is to later help effect the merger of Stokota NV, Stokota China and Stokota India to integrate its global strategy, and form, with Autoline, a conglomerate that will be a global leader in the manufacture of high-value, low cost automotive components and transportation solutions, it stated.