Japanese major Panasonic Corporation, which holds a near 30 per cent stake in Nippo Batteries Co. Ltd, is exiting from the joint venture by selling its stake to the Indian promoter of the company.

In what appears to be a coordinated action, the Indian promoter Mr.P.Dwaraknath Reddy is selling his holding in the company to Panasonic Corporation.

The two JV companies, in their respective filings with the stock exchanges, have explained that the rationale for the proposed transfer, to be made in both cases on or after June 11, as `inter-se transfer between promoter/promoter group’.

Nippo Batteries said that its Managing Director Mr. P.Dwaraknath Reddy would acquire from Panasonic Corporation 11,47,125 shares forming 30.59 per cent of the equity capital, its entire stake. The acquisition would be through block deal at market price prevailing on the date of transfer.

After the transaction, the stake of Mr. Reddy in the company would go up from 11.92 per cent to 42.51 per cent. As a group, the Indian promoters’ stake would go up to 74.90 per cent from the current 44.31 per cent post-acquisition and the public holding would be 25.10 per cent of the Rs 3.75 crore equity capital.

In the other deal, Panasonic Corporation would buy from Mr.Reddy his entire holding of 602,340 shares in Panasonic Carbon India Co. Ltd, constituting 12.55 per cent of the share capital, at Rs 146 per share. After the acquisition, the Japanese promoter’s stake would go up to 63.27 per cent in the company.

Nippo Batteries Co. Ltd, which was formerly known as Indo National Limited, has been in business since 1972 with its corporate office in Chennai. The shares of Nippo Batteries were trading at Rs 370 in the BSE, up by Rs 6 from the previous close.

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