The country’s largest two-wheeler maker Hero Honda today said its erstwhile Japanese promoter Honda Motor Co has exited the company completely after selling its 26 per cent stake to a group firm of the Indian promoter family.
“... Pursuant to a share transfer agreement amongst the promoters of the company, Honda Motor Co, Japan, has transferred the whole of its shareholding/voting rights in the company to Hero Investments Pvt Ltd, forming part of the Indian promoter group of the company,” Hero Honda said in a filing to the Bombay Stock Exchange (BSE).
“Consequent to the same, Honda Motor ceases to be a promoter within the meaning of the term under all applicable securities laws, including the Listing Agreement(s) with the stock exchanges,” it added.
In December last year, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buyout the entire 26 per cent stake of Honda in Hero Honda for Rs 3,841.83 crore.
“In view of the above, the entire promoter and promoter group of the company had been further reconstituted,” the filing pointed out.
According to the new structure, Hero Investments Pvt Ltd (HIPL), one of the main shareholders in Hero Honda, has now increased its stake in the Munjals-promoted auto major to 43.33 per cent from 17.33 per cent as on December 31, 2010.
Earlier this month, Honda’s two representatives on Hero Honda’s board, Toshiaki Nakagawa and Sumihisa Fukuda, had resigned for the final break-up of the joint venture.
In March, the Cabinet Committee on Economic Affairs had approved a proposal for a Rs 4,500 crore foreign direct investment in HIPL by Bain Capital and Lathe Investment.
Shares of Hero Honda were trading 0.81 per cent up at Rs 1,631.45 apiece on the BSE in the afternoon today.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.