GM, Mitsubishi, Isuzu Motors eye stake in Hindustan Motors: report
21 June 2010
GM, Mitsubishi, and Isuzu Motors are eyeing a stake in Hindustan Motors, reports CNBC-TV18, quoting sources. All three suitors have initiated talks with Hindustan Motors and are exploring possible asset buy out plans.
Hindustan Motors' Thiruvallur plant is the likely asset buy option. The plant has a manufacturing capacity of 12,000 vehicles per annum.
All the three suitors are keen on up and running auto manufacturing facilities. They are keen on cheap valuation for the auto manufacturing facilities.
The due diligence and valuation exercises are likely to begin soon. More clarity on the deal is expected in a month.
Hindustan Motors has been reported to the Board for Industrial and Financial Reconstruction (BIFR) on networth erosion. It had posted a net loss of Rs 42.85 crore in March 2010. CNBC-TV18 learns that the company has been exploring the stake sale option to emerge from BIFR.
When contacted, General Motors and Japan's Isuzu Motors denied having any interest in Hindustan Motors.