A worker at Amtek Auto
Debt-ridden Amtek Auto on Wednesday said it has signed a share purchase agreement with Nippon Steel and Sumitomo Metal Corporation to sell its stake in its joint venture (JV) company SMI Amtek Crankshaft.
"Pursuant to the approval granted by the committee of creditors of Amtek Auto (AAL)....for sale of all equity shares and preference shares held by AAL in SMI Amtek Crankshaft Pvt Ltd (SMI) to Nippon Steel and Sumitomo Metal Corporation (NSSMC), AAL has signed and executed share purchase agreement with NSSMC," Amtek Auto said in a regulatory filing.
Consequent to the approval of the resolution plan of AAL by the National Company Law Tribunal and on the coming into the effect of sale of AAL's 50 per cent stake in accordance with terms of SPA, SMI Amtek Crankshafts Private Ltd shall cease to be joint venture company of AAL, Amtek Auto said.
Amtek Auto is one of the 12 large insolvency cases which are undergoing insolvency resolution process with the National Company Law Tribunal (NCLT).
Last month, Liberty House, part of Sanjeev Gupta's global industrial group GFG Alliance, announced it has emerged as the successful highest bidder for Amtek Auto Pvt Ltd, paving the way for the former company's entry into the Indian market.
Shares of Amtek Auto were trading 4.79 per cent lower at Rs 21.85 on BSE.