Arab Today, arab today motherson to buy stake in peguform
Last Updated : GMT 23:56:52
Arab Today, arab today
Arab Today, arab today

Motherson to buy stake in Peguform

Arab Today, arab today

Arab Today, arab today Motherson to buy stake in Peguform

New Delhi - Arabstoday

Indian auto parts maker Motherson Sumi Systems said on Wednesday it would buy a majority stake in German Peguform Group, but the euphoria gave way to worries about margins that dragged its shares down after the initial rise. Auto ancillary firms in India typically look outside their home turf for buying opportunities as high expectations from founders of smaller Indian companies have thwarted many potential deals. Motherson would buy the debt-free Peguform whose revenue is expected to rise about 17 per cent to 1.6 billion euros in calendar 2011, Vivek Chaand Sehgal, vice chairman of the Indian firm said. The company did not disclose the deal value. By comparison, Motherson Sumi had posted net sales of $1.8 billion in FY11, but the group’s revenue is expected to grow almost five-fold to $10 billion by end-March 2015, from $2.2 billion in 2009/10, Sehgal had told Reuters in May. “Motherson does not have the capacity to serve the size of the global market. It brings a lot of knowhow and technology,” Sehgal said on Wednesday about Peguform buy. Peguform makes and distributes bumper systems, plastic components for vehicle exteriors, cockpits, dashboards and vehicle interior trims. Motherson Sumi makes a range of auto parts from rear-view mirrors to wiring harness and high-tension cords, serves Volkswagen, Ford, General Motors, Hyundai Motor and Maruti Suzuki among others. Volkswagen contributes about two thirds to Peguform’s revenue. The deal is expected to close in 2-3 months and will be funded through debt tied up from Indian lenders, Sehgal added. The firm had in May this year said it was pursuing overseas acquisitions and joint ventures in the auto ancillary space and was conducting due diligences across the globe. Motherson Sumi, which has earmarked a capex of about 5 billion rupees ($112 million) in 2011/12, expects to commission four plants in India and one each in South Africa and Hungary in 2011. Its unit SMR will commission a mirror plant each in Brazil and Thailand by end-2012. The acquisition of 80 per cent in Peguform would be made through a special purpose vehicle in which Motherson Sumi Systems will hold 51 per cent and group firm Samvardhana Motherson Finance would hold 49 per cent stake. Motherson would buy the stake in Peguform from Cross Industries, who would retain 20 per cent holding. Motherson Sumi shares had rallied more than 7 per cent in the morning session, but shed all gains after the announcement of the European buy to be down as much as 7 per cent. It ended 3.53 per cent lower at 230.85 rupees in a Mumbai market that rose 1 per cent. From / Gulf Today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today motherson to buy stake in peguform Arab Today, arab today motherson to buy stake in peguform

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations

GMT 10:47 2017 Thursday ,23 February

Saudi Aramco may offer discounted shares to citizens

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday