The Hindu Business Line : Ucal Fuel buys out Mikuni’s 26% stake

Chennai, April 8 Mikuni Corporation, the Japanese collaborator of Ucal Fuel systems Ltd since 1987, is now out of the company. Carburettors Ltd, the Indian promoter of Ucal Fuel, has bought over Mikuni’s 26 per cent stake in Ucal at a price of Rs 20 a share.

Today, on the NSE, Ucal’s share closed at Rs 70.15, higher by Rs 1.15 over the previous close. Carburettors Limited’s holding after the acquisition will rise to 49.32 per cent of the shares/voting rights of Ucal Fuel Systems Ltd.

Ucal’s Managing Director, Mr Jayakar Krishnamurthy, told Business Line today that the parting of ways was “absolutely amicable.” The partners had been discussing Mikuni’s exit for a long time, he said.

Ucal needed Mikuni’s technology for making carburettors some time ago but not now. Moreover, besides carburettors, Ucal Fuel has on its own developed a range of products such as exhaust gas recycling valves, fuel and water pumps, components for multi-point fuel injection systems and direct fuel injection systems for 2-stroke motorcycles.

Mr Krishnamurthy said that Ucal would continue to export carburettors through Mikuni. “Post divestment UCAL Fuel Systems and Mikuni Corporation will cooperate in certain limited fields. Both UCAL Fuel Systems Limited and Mikuni Corporation are free to pursue their individual growth and strategies in India and worldwide.

“UCAL Fuel Systems will be forming multiple alliances and partnerships with various companies worldwide on a wide range of products. The objective of UCAL Fuel Systems Limited is to enlarge the product profile and grow in newer areas,” says a press release from the company.

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