Global private equity major Blackstone will buy majority stake in domestic auto component maker Igarashi Motors India in a multi-layered deal.
Making the announcement today,Chennai-based Igarashi Motors said its board has approved the transaction.
Under the deal,Blackstone along with another entity plans to acquire over 97 per cent stake in the company.
The deal includes open offer worth over Rs 51.7 crore. Other details were not immediately available.
At the end of June,Agile Electric held 62.80 per cent stake in Igarashi Motors.
The entities involved in the deal are Blackstone Capital Partners (Singapore) VI FDI Three Pte Ltd and BFIP (Cayman) VI-ESC FDI Three Ltd.
“… the investors will indirectly acquire control over the company through its control of Agile Electric Sub Assembly Pvt Ltd (AESPL),” upon completion of arrangements under the share purchase pacts,Igarashi Motors said in a regulatory
As per the share purchase agreements,Blackstone and BFIP would acquire over 4.57 crore shares from Agile Electric and related entities including Padmanabhan Mukund,managing director of the target company.
Besides,the two investors would subscribe to 61.77 lakh shares of Agile Electric.
“Pursuant to these transactions and upon completion
occuring the SSPA (Share Purchase Agreements),the investors shall be the legal and beneficial owners of 97.90 per cent of the share capital of AESPL,” the filing said. Through the open offer,the entities would purchase up to 79.54 lakh shares — at a price of Rs 65 apiece — from Igarashi Motors’ public shareholders.
The offer would be made by Agile Electric along with Blackstone Capital Partners and BFIP (Cayman) VI-ESC FDI Three and Padmanaban Mukund.
The deal would be subject to various regulatory approvals
including from the German Competition Authority.
Shares of the company rose 1.35 per cent to close at Rs
59.95 on the BSE