Comments
Maruti Suzuki India (MSIL), at its board meeting on Wednesday, took a slew of decisions, including acquisition of Delhi-based JJ Impex, and supply of Vitara Brezza to Toyota Kirloskar Motor (TKM).
In a filing to the BSE, the company said the board has approved acquiring 39.13 per cent equity stake held by Sumitomo Corporation, Japan and 10 per cent held by Sumitomo Corporation India Pvt Ltd in JJ Impex (Delhi) Pvt Ltd, a company engaged in automobile service and repair business.
The cost of acquisition or the price at which the shares are to be acquired is fixed at ₹21.73 crore, the company said.
“After the acquisition, the company shall become the wholly-owned subsidiary of MSIL. MSIL shall have the right to nominate/ appoint all the Directors on the board of the company. The nominee Directors of Sumitomo Group shall resign from the board of the company,” MSIL said.
The acquisition does not require any government approvals, it added.
MSIL also said the board has approved supply of another product (derivative model of Vitara Brezza currently being manufactured by the company) to TKM. “This will result in incremental sales for the company,” it said.
The board has also approved the appointment of Maheshwar Sahu as an Independent Director of the MSIL for a period of five years (from May 14, 2020 till May 13, 2025) subject to shareholders’ approval in the ensuing annual general meeting.
Sahu is an ex-senior civil servant with over 30 years of leadership experience in Central and State governments.
Comments
COMMENT NOW
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.