Auto components maker Uno Minda (formerly known as Minda Industries Limited) said on Monday its Board has approved the acquisition of an 81.69 per cent stake in Kosei Minda Aluminum Company (KMA) and a 49.90 per cent stake in Kosei Minda Mould (KMM) from joint venture partner Kosei, Japan (Kosei) at transaction costs of ₹60 crore and ₹11 crore, respectively.

“The acquisition is planned through a composite scheme of merger with Uno Minda through a swap of shares. The enterprise value of KMA and KMM, considered for the purpose of the transaction, is around ₹60 crore and around ₹11 crore, respectively,” the company said in a statement.

Technical agreement

While the merger will be subject to various statutory authorities, Uno Minda will start managing the business and operations of these two entities with effect from April 1, the company said, adding that it will also be entering into a technical license agreement with Kosei Japan for 10 years, which shall be renewed thereafter with mutual consent of the parties, to ensure continuity of technical support.

“Kosei has been a very important partner in our growth journey in the last few years, where we have become the leading four-wheel alloy wheel player in the country, facilitating self-reliance. The acquisition will further consolidate Uno Minda’s leadership position in the segment,” Nirmal K Minda, Chairman and Managing Director, Uno Minda Group, said.

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