Kinetic to issue 11.1% stake to Taiwan's $1-Billion Sanyang Industry Co
By Our Corporate Bureau | 10 Jan 2006
Mumbai: The board of directors of Kinetic Motor Company Limited has recommended a preferential allotment of 2,065,000 equity shares priced at Rs66 each (amounting to Rs13.63 crore) shares to Taiwan-based Sanyang Industry Co. Ltd. (SYM).
SYM's holding will be approximately 11.1 per cent of the enhanced capital of Kinetic Motors and the management control will be retained with the Kinetic Group. The issue is in keeping with SEBI guidelines.
SYM was founded in Taipei in 1954 and has its headquarters in in the Hsin Chu Industrial Park in Taiwan. Its three major production bases are in Taiwan, China and Vietnam. SYM produces more than 600, 000 motorcycles from 50 to 500 cc, including electric scooters and fuel injection technology vehicles and 20,000 automobiles per annum, sold under the SYM brand.
Kinetic has also entered into a technical collaboration with SYM, for technology and manufacturing of its models in India.
"This equity participation by SYM will enable us to expand our business in India as well as other countries," says Sulajja Firodia Motwani, director, Kinetic Motor Company Limited. "This investment by SYM is in line with our commitment to deliver long-term shareholder value. Kinetic has introduced superior global technology to the Indian market over the last two decades through its global tie-ups and has always been appreciated by the people in India. We look forward to bringing out the best products with new generation engine technology for the Indian masses through this technical collaboration with SYM."
HSBC and Amarchand Mangaldas were the advisors to the Kinetic Group, while KPMG Corporate Finance and AZB partners were the advisors to SYM.