M&A

M&A

Lucas Indian Service buys out stake of 2 co-promoters in India Nippon Electricals for Rs.169-Cr

The Hindu   BSE Filing  

Lucas Indian Service Ltd. (LIS), one of the promoters of publicly listed auto components maker India Nippon Electricals Ltd. (INEL) is to acquire the stakes held by two other promoter entities in INEL for INR 168.91 crore, thereby increasing its stake to 70.32%. A Share Purchase Agreement was signed between LIS and Mahle Holding (India) Pvt. Ltd. (MHIPL) for acquisition of 30 lakh shares through an off-market transaction at INR 356.49 apiece aggregating to INR 106.95 crore. The second agreement was entered with Mahle Electric Drives Japan Corporation (MEDJ) for acquiring 14.15 lakh shares through a block deal for INR 438 apiece aggregating to INR 61.97 crore. The transaction will be completed on June 26. Prior to the new deals, LIS held a 50.80% stake in INEL, while MEDJ held 6.25% and MHIPL held 13.26%. India Nippon Electricals Limited was incorporated in 1984 and converted into a joint venture in 1986 between Lucas Indian Service Limited, a wholly-owned subsidiary of Lucas-TVS Limited and MAHLE Electric Drives Japan Corporation, Japan – a company of MAHLE Group, Germany, to manufacture Electronic Ignition Systems for two-wheelers, three wheelers and portable engines.