Amtek Auto appoints Morgan Stanley to advise on debt reduction

NEW DELHI (Reuters) - Amtek Auto said on Monday it has appointed investment bank Morgan Stanley to advise the company on its debt reduction plan, which includes a minority stake sale of up to 40 percent in its overseas business.

Car parts maker Amtek is looking to sell its German unit Tekfor, with sales of more than 500 million euros ($554 million), two people familiar with the matter told Reuters in October.

Amtek said it has received a large number of enquiries to buy out a couple of its overseas businesses, including Tekfor, which it bought out of insolvency two years ago, the company said in a statement to the Bombay Stock Exchang.

 

"The interest for this has come from trade players and financial players around the globe... there are several options and it is a matter of right value-opportunity that will determine the eventual decision," the company said.

In August, shares of Amtek had slumped amid reports of liquidity issues at the company.

(Reporting by Aditi Shah; Editing by Sunil Nair)