Auto components maker Minda Industries will acquire 49 per cent stake of Roki Japan for Rs 42.97 crore in a joint venture that its parent group UNO Minda has with the Japanese firm.
The board of directors of the company on Monday pproved the proposal to buy Roki Japan's 49 per cent stake from the JV - Roki Minda - in which the Japanese partner holds 51 per cent stake and UNO Minda Group has 49 per cent.
"The company will acquire 49 per cent stake in Roki Minda by making investments of Rs 42.97 crore for acquisition of 4.09 crore equity shares of Rs 10 each fully paid up from the existing shareholders of the said company, based on valuation of the independent valuer," Minda Industries said in a BSE filing.
On acquisition of these shares, Roki Minda will become a joint venture company. The above stated transaction will close on or before October 1, 2016, it added.
The JV manufactures air cleaner assembly for automobiles and supplies to companies, including Maruti Suzuki, Honda, Yamaha and HMSI. It has manufacturing facilities at Bawal in Haryana, Mallur in Karnataka and Bidhalpur in Gujarat.
Minda Industries on Monday reported 66.17 per cent jump in net profit at Rs 22.6 crore in the first quarter ended June 30, 2016 as against Rs 13.6 crore in the same period last financial year.
Net sales of the company during the period under review stood at Rs 395.48 crore as compared with Rs 337.64 crore in the year-ago period.
Shares of Minda Industries ended the day at Rs 1,114.95 apiece, down 4.33 per cent from the previous close on BSE.