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Motherson Sumi Systems executes binding agreement with Cross Industries

18 Jul 2011 Evaluate

Motherson Sumi Systems (MSSL) has executed binding agreement with Cross Industries for acquiring 80% stake in Peguform GmbH and Peguform Iberica, SL together with 50% stake in Wethje Entwicklungs GmbH and Wethje Carbon Composite GmbH. By end of September 2011, the deal is expected to be completed by which time all closing conditions including regulatory approvals as applicable, are expected to be received.

Further, the total share consideration for this transaction is Euros 141.5 million, of which MSSL share shall be Euro 72.165 million. MSSL proposes to raise loan overseas to finance this transaction. ICICI Bank is the mandated lead arranger for financing the entire transaction.

Earlier, Motherson Sumi Systems stated it would soon finalise acquisition of 80% of the shareholding of Peguform Group, Germany from Cross Industries AC, who would continue to hold 20% shareholding. This acquisition would also include 50% holding in Wethje Carbon Composite which is a part of Cross Industries. The company’s board at its meeting held on July 13, 2011 had considered and accorded it’s in principle approval to acquire an overseas entity. The acquisition would be made through a joint venture company in which Motherson Sumi Systems would hold 51% and Samvardhana Motherson Finance would hold 49% share.

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