Japanese auto component maker Denso is selling the its small motors business unit of its majority owned Indian public listed firm Denso India Ltd to a wholly owned subsidiary Denso Haryana Pvt. Ltd for Rs 147.7 crore in an intra group deal.
The sale will involve transfer of all assets (tangible and intangible), employees etc. of small motors business for a cash consideration of Rs 147.7 crore, the company disclosed on Monday.
Denso India scrip was up around 1 per cent in mid-day trades on Monday with it shares trading at Rs 55.35, valuing the company at Rs 116 crore in a flat Mumbai market.
Japan’s Denso owns 52.9 per cent in Denso India that also counts amongst its large shareholders the country’s largest carmaker Maruti Suzuki and Japanese industrial group Sumitomo Corp.
Maruti Suzuki and Sumitomo each own around 10.27 per cent in the public listed firm that is engaged in manufacturing and sales of electrical automotive components, electric fans, ventilators, magnetos and windshield wiper motors.
For the year ended March 2011, Denso India had revenues of Rs 928.8 crore with marginal profit of Rs 2 crore.
Denso Haryana, a wholly owned arm of Denso, is into manufacturing and sales of fuel pumps, injectors, engine ECUs and ISCV.
It is one among various subsidiaries and joint ventures of Denso including Denso International India (sale of automotive components manufactured by companies in India), Denso Kirloskar Industries (radiators and car air conditioners), Denso Thermal Systems Pune (HVAC units and heaters) and the recently established Denso Subros Thermal Engineering Centre (designing of car air conditioning systems and other products).