Samvardhana Motherson Acquires Remaining 10% Stake in South African Unit
Filing Summary
Samvardhana Motherson International Ltd has announced the acquisition of the remaining 10% stake in Motherson Lumen Systems South Africa Pty Ltd. This transaction, conducted through its indirect wholly owned subsidiary, will make Motherson Lumen SA a fully owned subsidiary of the company. The purchase consideration for this acquisition is ZAR 10 million. The transaction is expected to close by the third quarter of FY 2025-26. This acquisition aligns with the company’s strategy to streamline operations and enhance decision-making efficiency within its automotive parts and accessories business.
Samvardhana Motherson International Ltd has informed the exchange about its decision to acquire the remaining 10% stake in Motherson Lumen Systems South Africa Pty Ltd. This acquisition will be executed through Samvardhana Motherson Automotive Systems Group B.V., an indirect wholly owned subsidiary of the company. Upon completion, Motherson Lumen SA will become a 100% indirect wholly owned subsidiary of Samvardhana Motherson International Ltd.
The financial terms of the transaction include a purchase consideration of ZAR 10 million. This amount is approximately equivalent to INR 51,900,000. The acquisition is structured as a cash transaction, and no share swap is involved. The transaction does not require any governmental or regulatory approvals, facilitating a smoother process towards completion.
Motherson Lumen Systems South Africa Pty Ltd is engaged in the design, manufacture, and supply of OEM-certified automotive parts, accessories, and dealer fit products. The company reported a revenue of ZAR 135 million for the financial year 2024-25. This acquisition follows the initial acquisition of a 90% stake in the company as part of the broader acquisition of the Lumen Group on April 8, 2024. The remaining 10% stake was previously owned by Mr. Sundras Naidu.
The acquisition is part of Samvardhana Motherson International Ltd’s strategy to streamline its corporate structure, which is expected to support efficient decision-making processes. By owning 100% of Motherson Lumen SA, the company aims to ensure that all future growth benefits fully accrue to it. The transaction is not classified as a related party transaction, as it involves a third-party entity.
The transaction is anticipated to be completed by the third quarter of the financial year 2025-26. This timeline allows for the integration of the remaining stake into the company’s existing operations. The acquisition is expected to enhance the company’s operational capabilities in the automotive sector, particularly in the South African market.
Samvardhana Motherson International Ltd is a global supplier of automotive components, focusing on providing integrated solutions to its clients. The company’s strategic priorities include expanding its global footprint and enhancing its product offerings to meet the evolving needs of the automotive industry.