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Two-wheeler maker Hero MotoCorp (HMCL) today said it has increased stake in its Colombian joint venture to 68 per cent.
HMCL Netherlands BV, a wholly owned subsidiary of Hero MotoCorp, had formed the joint venture -- HMCL Colombia in 2014 holding 51 per cent stake with Woven Holdings LLC, a firm incorporated in the US.
Pursuant to subsequent investment by HMCL BV into the share capital of the joint venture company, the shareholding of the joint venture partners have been re-aligned and the company’s shareholding in the joint venture has increased to 68 per cent, Hero MotoCorp said in a regulatory filing.
The other joint venture partner’s shareholding in the joint venture has decreased to 32 per cent on a fully diluted basis from 49 per cent, it added.
Investment is being made towards acquisition of 30 million compulsorily convertible preference shares (CCPS) which on fully dilutive basis increase the shareholding from 51 per cent to 68 per cent.
Cost of acquisition or the price at which the shares are acquired is USD 10,500,600 (nearly Rs 70 crore), the filing said.
“(The) investment is being made to strengthen presence in overseas markets particularly Latin America,” Hero MotoCorp said.
HMCL Colombia is engaged in the business of manufacturing, assembly and distribution of two-wheelers in Colombia. It had posted a turnover of $25.8 million in 2016-17 and $22.3 million in 2015-16, it added.
It started manufacturing operation in Villa Rica, Cauca Colombia in 2015.
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