Click it and Unblock the Notifications
Hero MotoCorp Buys 49% Stake In Erik Buell Racing
The latest development will take that partnership to a completely new level. Hero has agreed to inject $25 million into EBR for the 49.2 percent stake. Of that amount, $15 million has already been paid by Hero, with the remaining $15 million is scheduled to be payed within the next nine months.
"This equity partnership is a natural extension of our existing relationship with EBR, which is going to further strengthen our strategic alliance," says Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp.
With Hero acquiring nearly half of Erik Buell Racing, it will be allowed to have two members on the board of directors, along with a third, observer. The top management at EBR, however, will remain unchanged. Erik Buell and his wife still hold the majority, controlling stake and he will remain as the CEO of EBR.
Hero becomes the second Indian two wheeler major to acquire a major stake in an international motorcycle company, the first being Bajaj, with its 47 percent stake in KTM. Hero's latest move is clearly aimed at setting up its position in the global arena. Hero, which mostly excels in producing, small displacement, mass consumer level motorcycles, can only enter markets such as the US by developing larger, technologically more advanced products. Its latest move provides it with a solid ground to start its global journey from.
Continue with Google