Motherson Merges New Entity: Motherson International Limited, Abu Dhabi

SMRC Automotive Holdings Netherlands B.V., a wholly-owned subsidiary of Samvardhana Motherson International Limited, has recently set up a new wholly-owned subsidiary named Motherson International Limited, Abu Dhabi. They have received the certificate of incorporation for this new company on August 16, 2024.

The acquisition does not involve related party transactions. There are no interests from promoters, promoter groups, or group companies in this newly incorporated entity, and the transaction is conducted at arm’s length. No governmental or regulatory approvals are required for this acquisition.

The new company will manufacture, assemble, and perform related activities for various automotive and non-automotive parts and subparts.

Purpose of Acquisition

The acquisition aims to expand into manufacturing, assembling, marketing, trading, importing, exporting, and sourcing parts and materials for both automotive and non-automotive industries.

Details of the Acquisition

• Completion Date: The acquisition was completed on August 16, 2024, which is the incorporation date of the new entity.
• Nature of Consideration: SAHNBV will subscribe to the authorised share capital of AED 30,000,000 in cash, potentially in multiple instalments.
• Cost of Shares: Each new company share will be priced at AED 1,000.
• Shareholding: SAHNBV will own 100% of the new company’s share capital. SAHNBV, a wholly-owned subsidiary of Samvardhana Motherson International Limited, will fully control this entity.

About Motherson International Limited, Abu Dhabi

The new company, Motherson International Limited, Abu Dhabi, was set up under SMRC Automotive Holdings Netherlands B.V. (SAHNBV), which is a wholly-owned subsidiary of Samvardhana Motherson International Limited. As this is a new company, it does not yet have a turnover.

About Samvardhana Motherson International Ltd

Motherson Sumi Systems is a leading manufacturer of automotive components, primarily supplying parts to car manufacturers. It stands out as India’s largest auto parts supplier and holds a significant global presence. The company is a major producer of exterior rear-view mirrors and has a strong market share in this segment. Additionally, Motherson Sumi excels in producing polymer-based interior and exterior modules and is the top manufacturer of wiring harnesses for passenger vehicles in India.

On August 19, 2024, the share price of Samvardhana Motherson International Ltd opened at ₹187.00, touching the day’s low of ₹185.35 as of 10:47 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.