It Is Bid Adieu Of Honda From Hero Honda

By By: Vicky.in

Published: Wednesday, April 6, 2011, 17:16 [IST]

The moment has come and the action taken with the exit of Honda from the Hero Honda JV putting an end to the 26 year long stint of automobile affinity. The Hero Honda has formally announced this as the Japanese motorcycle maker has left the JV after selling its 26% share to the Hero"s Munjal Group to be managed by Hero Investments Pvt ltd.

This made Honda Motor to be relieved of the promoter status of securities laws, and Listing Agreements in the BSE. It is learnt that Hero"s Munjal Group has agreed to buy 26% share of Honda at Rs3841.83 crore necessitating the reconstitution in the company. The new norm has made Hero Investments Pvt Ltd to have more stake in Hero with 43.33% from the current 17.33%. In another move, the break away resulted with the resignation of two representatives of Hero Honda"s Board.

The transfer of shares from Honda to Hero had required the ratification from the Cabinet Committee on Economic Affairs since the amount came to Rs4500 crore from the foreign investment. The deal was stuck easily with the proposal from two equity firms, Bain Capital Investors II and Lathe Investment Pvt Ltd whose combined share amounted to 29% in the new set up. The company"s share got a rise by 0.81% at Rs1631.45 in BSE.

Article Published On: Wednesday, April 6, 2011, 17:09 [IST]

Read more on: #automobile #hero honda #two wheeler

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