India Motor Parts & Accessories (IMPAL), a TVS Group company engaged in the distribution of automobile parts and accessories, said it will acquire some stake of ZF in Brakes India for a consideration of ₹70 crore.
“The board of the company today approved the acquisition of 36,874 equity shares of ₹100 each representing 1.54 per cent in Brakes India from the foreign promoter ZF International UK Ltd for a total sum not exceeding ₹70 crore,” the company said in a filing to stock exchanges.
Pursuant to the acquisition of Wabco Holdings by ZF AG, Germany, the Competition Commission of India had directed the foreign promoter of Brakes India, ZF International UK Ltd, a subsidiary of ZF AG, to disinvest its entire stake of 49 per cent held in Brakes India. The said acquisition is pursuant to the divestment steps undertaken by ZF.
Accordingly, IMPAL will execute a share purchasing agreement with ZF International UK Ltd for the purpose of effecting acquisition of shares, subject to necessary regulatory approvals.
Brakes India, engaged in manufacture of braking systems for cars and commercial vehicles, reported revenue of ₹3,990 crore in FY20 compared with ₹4,896 crore in FY19. Its PAT stood at ₹246 crore against ₹474 crore. Its networth was ₹2,441 crore in FY20.