Motherson Sumi Systems Ltd has executed the binding agreement with Cross Industries for acquiring 80 per cent stake in €1.36-billion German auto component maker Peguform.
The share consideration for this transaction is €141.5 million, of which Motherson Sumi Systems share will be €72.165 million. The acquisition would be made through a joint venture in which Motherson Sumi will hold 51 per cent and Samvardhana Motherson Finance Ltd would hold 49 per cent.
Samvardhana Motherson holds 36.64 per cent in Motherson Sumi.
The acquisition will also involve the Delhi-based Samvardhana Motherson Group taking a 50 per cent rake in Wethje Carbon Composite, which is part of Cross Industries AG that owns 100 per cent in Peguform.
ICICI Bank is the mandated lead arranger for financing the transaction.
MSSL proposes to raise loan overseas to finance the transaction.
The deal closes in September-end. The company expects to meet all conditions by then. The regulatory approvals are also expected by end of September.
Peguform's 2010 sales stood at €1,355.53 billion with a reported EBITDA of €66.87 million.
Its profit after tax was €6.8 million and net debt, as on December 31, 2010, was €166.50 million.