Japanese firm Denso Corporation has picked up 51 per cent stake in Pricol Components Ltd, a subsidiary of automotive components manufacturer Pricol Ltd, for an undisclosed amount.
This follows a restructuring early this week where Pricol entered into a slump sale agreement with its then wholly owned subsidiary Pricol Components for transfer of it’s Denso Technology Instrument Cluster Undertaking situated at Coimbatore (Tamil Nadu) and at Manesar (Haryana) related to the four wheeler personal passenger vehicles. This has customers such as Maruti Suzuki India and Toyota Kirloskar Motor.
As per a stock exchange disclosure, Pricol Components Ltd issued 51 lakh equity shares of face value of Rs 10 per share to Denso Corporation on April 23, 2013. Pricol Components has now become a JV between Denso Corporation and Pricol Ltd in which Denso holds 51 per cent stake and remaining 49 per cent is held by the parent company.
The premium per share paid by Denso in the shares picked in the JV was not disclosed. Pricol Components will be renamed as Denso Pricol India Ltd later this year.
Denso has been a partner of Pricol for a long time mainly in the field of instrumental cluster business and had held 12.5 per cent stake in the company till December. It sold off shares of the Indian public listed company over the past few weeks and has completely exited few days back.
Established in 1972, Pricol designs, manufactures and sells instrument clusters, automotive sensors, and power train related products. The firm is led by its promoter-cum-chairman Vijay Mohan, generated sales of Rs 1,082 crore with net profit of Rs 63 crore in FY12.
In March last year, the company hived-off its plant in Pune into a JV with Johnson Controls Enterprises UK Ltd (a wholly owned subsidiary of Johnson Controls Inc.).
Founded in 1949, Denso Corporation headquartered in Kariya, Aichi prefecture, Japan, is engaged in manufacturing automotive components like air conditioning systems, radiators, cooling fans, inter coolers, oil coolers, engine cooling modules, reserve tanks, construction equipment, truck refrigeration units, and air purifiers. The firm produces automotive instrument clusters in nine countries and regions across the globe and recently announced that it will begin producing instrument cluster in Poland from August 2013.