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Motherson Sumi surges on signing agreement to acquire Bombardier’s EWIS business in Mexico

21 Oct 2020 Evaluate

Motherson Sumi Systems is currently trading at Rs. 111.50, up by 2.30 points or 2.11% from its previous closing of Rs. 109.20 on the BSE.

The scrip opened at Rs. 110.35 and has touched a high and low of Rs. 111.85 and Rs. 110.35 respectively.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 151.00 on 09-Jan-2020 and a 52 week low of Rs. 48.50 on 24-Mar-2020.

Last one week high and low of the scrip stood at Rs. 112.05 and Rs. 104.50 respectively. The current market cap of the company is Rs. 34484.64 crore.

The promoters holding in the company stood at 61.73%, while Institutions and Non-Institutions held 29.61% and 8.67% respectively.

Motherson Sumi Systems (MSSL), through its Mexican subsidiary, Motherson Rolling Stocks S. de R.L. de C.V. (MRS), has signed an asset sale and purchase agreement to acquire the activities of Electrical Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico (BT Ensambles Mexico) . MRS is part of the Motherson Rolling Stock Division which designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock manufacturers.

The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around $10 million (subject to customary adjustments). The revenue of the said business was $25 million for calendar year 2019. The transaction is subject to customary closing events and expected to complete in Q4 FY20-21.

Motherson Sumi Systems, including its subsidiaries and JVs is one of the leading manufacturer of automotive wiring harnesses, mirrors for passenger cars and a leading supplier of plastic components and modules to the automotive industry.

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