Maruti Suzuki approves issue of shares to Suzuki Motor Corp

economictimes.indiatimes.com:

Maruti Suzuki Tuesday said its board has approved issue of equity shares of the company on preferential allotment basis to Suzuki Motor Corporation (SMC), as consideration for the acquisition of a 100% stake of SMC in Suzuki Motor Gujarat Private Limited (SMG). This will be subject to applicable regulatory and statutory approval(s), as may be required, including requisite approval of shareholders.

Post such acquisition, Suzuki Motor Gujarat (SMG) will become a wholly owned subsidiary of the company. “The total number of securities proposed to be issued to SMC as consideration for the acquisition of 100% stake of SMC in SMG, shall be decided in a subsequent Board Meeting, basis relevant valuation reports subject to and in compliance with the applicable regulatory and statutory framework”, Maruti Suzuki said in a filing to the bourses.

Last week, Maruti Suzuki said that it will acquire parent Suzuki Motor’s manufacturing facility in Gujarat to ensure better management control over the unit. The local car market leader said this will help it respond faster to customer needs in India.