The promoters of Amtek Auto Ltd, led by Arvind Dham, have signed a share purchase agreement to acquire 58.5 per cent stake in Delhi Stock Exchange-listed Adhbhut Infrastructure Ltd for an estimated Rs 10.3 crore ($1.7 million).
The Dham family are acquiring 49.41 per cent and 9.10 per cent stake, totalling to 58.5 per cent, in Adhbhut Infrastructure from Allianz International Ltd and K T James, respectively, as per a disclosure to capital markets regulator Securities and Exchange Board of India (SEBI). KT James also happens to be an independent director on the board of Amtek Auto among few others Amtek group firms.
Not much is known about the business activities or assets of Adhbhut Infrastructure.
Following the stake buy, the promoters have also made an open offer to buy an additional 26 per cent equity in Adhbhut Infrastructure from the public shareholders, so as to comply with the Indian takeover norms.
As per takeover norms by SEBI, an acquirer who is buying over 25 per cent stake in a listed company needs to make a mandatory offer for additional 26 per cent from public shareholders of the company.
At an offer price of Rs 16 per share, the Dham family will have to shell out up to Rs 4.58 crore to public shareholders of Adhbhut Infrastructure for the 26 per cent stake.
Amtek Auto, backed by investors like Warburg Pincus and ChrysCapital, was founded in 1985. Gurgaon-based company manufactures automotive components and assemblies, iron, gravity and aluminium castings, forgings, complex machining, ring gears and flywheel assembly.
Currently, Amtek Group, along with its subsidiaries, operates around 60 facilities in India, the UK, Germany, Brazil, Italy, Mexico, Russia and the US. It has been active in expanding through inorganic route and has announced three deals this year itself including two large overseas transactions.