Samvardhana Motherson International Ltd.
3.80 (3.24%) Motherson Sumi surges on acquiring Wiring Harness business of Stoneridge Inc
Date: 04-08-2014Motherson Sumi Systems is currently trading at Rs. 356.00, up by 3.65 points or 1.04% from its previous closing of Rs. 352.35 on the BSE.
The scrip opened at Rs. 356.30 and has touched a high and low of Rs. 358.00 and Rs. 355.10 respectively. So far 7413 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 382.70 on 11-Jul-2014 and a 52 week low of Rs. 123.40 on 28-Aug-2013.
Last one week high and low of the scrip stood at Rs. 369.65 and Rs. 340.90 respectively. The current market cap of the company is Rs. 31074.43 crore.
The promoters holding in the company stood at 65.59% while Institutions and Non-Institutions held 22.68% and 11.73% respectively.
Motherson Sumi Systems (MSSL) has successfully closed the deal for acquiring wiring harness business of Stoneridge Inc. in a record time on receipt of necessary regulatory approvals. MSSL had earlier on May 27, 2014, signed an agreement to acquire the Wiring Harness business of Stoneridge Inc. through asset purchase at consideration of $65.7 million on no cash no debt basis. The total cash outlay of $71.38 million includes increase in working capital and cash/bank balances subject to post- closing adjustments.
Included in the transaction are six manufacturing facilities located in Portland, Indiana (USA); Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; as well as an engineering and administrative center located in Warren, Ohio (USA). Stoneridge’s Wiring Business designs and manufactures wiring harness products for sale principally to the commercial, agricultural and off-highway vehicle markets, as well as assembles entire instrument panels that are configured specifically to an OEM customer’s specifications in the commercial vehicle market.
The addition of these manufacturing facilities would enable MSSL to service the growing requirement of the customers in the region. With this acquisition, MSSL now has over 45 plants related to wiring harness business.