Arab Today, arab today motherson to buy stake in peguform
Last Updated : GMT 04:38:06
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

arabstoday
arabstoday

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

 



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 Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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