Maruti to issue over 1.23 cr shares to Suzuki for Gujarat unit buyout
New Delhi, November 24
Maruti Suzuki India on Friday said its Board has approved allotment of over 1.23 crore shares to its parent Suzuki Motor Corporation (SMC) on a preferential basis for the acquisition of 100% stake in Suzuki Motor Gujarat (SMG).
SMC’s stake in MSI to rise to 58.19%
- The company’s Board has approved allotment of shares to SMC having face value of Rs 5 each at a price of Rs 10,420.85 per share, the auto major said
- As per the valuation report, the Rs 10,420.85 price per share approved by Maruti Suzuki Board is equivalent to Rs 12,841.1 crore in value terms
The company’s Board has approved allotment of 1,23,22,514 shares to SMC having face value of Rs 5 each at a price of Rs 10,420.85 per share, the auto major said in a regulatory filing.
As per the valuation report issued by RBSA Valuation Advisors LLP, the Rs-10,420.85 price per share approved by Maruti Suzuki Board is equivalent to Rs 12,841.1 crore in value terms.
With the allotment, SMC’s stake in Maruti Suzuki India (MSI) will increase to 58.19% from the earlier 56.48%.
Last week, Maruti Suzuki shareholders had approved a proposal to issue shares on a preferential basis to SMC as consideration for a related party transaction for the acquisition of 100% stake in Suzuki Motor Gujarat (SMG).
The MSI Board, in its meeting held on July 31, 2023, had approved the termination of the contract manufacturing agreement with SMG and the acquisition of its shares by SMC at a price to be determined in accordance with all applicable laws and regulations.
MSI chairman RC Bhargava had said the share-swap method adopted for the acquisition of SMG is far better for the shareholders of the company. He had reiterated that the aim of the acquisition was to align the production operations under a single management.
