Sundram Fasteners has reduced its stake in Windbolt GmbH, its German joint venture to 9.99 per cent from 24.99 per cent.
Sundram Fasteners has informed the BSE that it has transferred its shares in Windbolt GmbH for €19,999 to its joint venture partner Wolfgang Naumann.
As a result, the shareholding of the company in Windbolt has been reduced from 24.99 per cent to 9.99 per cent. Following this transaction, Windbolt GmbH is no longer an associate company of Sundram Fasteners.
The company informed the exchange that due to the uncertain outlook without any sign of improvement in the German market and current negative order book situation, Windbolt GmbH has filed for insolvency in accordance with the German law.
Sundram Fasteners has initiated its involvement and claim assertion process as per local laws of Germany through its legal advisors.
Currently, the loss is not determinable. However, it is expected that it will not be material, it said.
It entered into the joint venture in 2011 to manufacture bolts for the wind energy industry in Germany.
Sundram Fasteners invested €33,332 constituting 24.99 per cent equity stake in the total capital of €133,332.
The contribution of Windbolt GmbH (for the year ended December 31, 2014) to the consolidated turnover of the company is 0.069 per cent (₹2.16 crore) and to profit before tax 1.81 per cent (₹3.29 crore) as at March 31, 2015.