SMIL Arm to Acquire Remaining 14.29% Stake in Motherson Technology Services

On 15 May 2025, Samvardhana Motherson International Limited (SAMIL) took a decisive step to strengthen its global presence by approving the acquisition of the remaining stake in its Japanese subsidiary, Motherson Technology Services Kabushiki Gaisha (MTSKG). This transaction is in alignment with the group’s long-term goal of structural consolidation and increased control across its overseas technology ventures.

Full Ownership through Strategic Consolidation

Motherson Technology Service SG Pte Ltd (MTS SG), a step-down subsidiary of SAMIL, is set to acquire the remaining 14.29% stake in MTSKG from Mr Akihiko Yamauchi. Currently, MTS SG already holds 85.71% of MTSKG. With this acquisition, it will attain full ownership, thereby making MTSKG a wholly owned subsidiary. The deal is valued at ¥4,000,000 and will be settled through cash consideration.

This transaction does not require any regulatory or governmental approvals and is expected to close by the first quarter of FY 2025-26. The move is designed to simplify the corporate structure and consolidate control within the Motherson group, reinforcing its operational integration in the Japanese IT market.

Financial Footprint and Business Relevance

MTSKG, incorporated on 7 October 2013, is engaged in software design and IT services, particularly focused on delivering localised solutions to clients in Japan. The company has reported consistent revenues over the past three years: ¥241,300,752 ($1.65 million) in FY 2023-24, ¥256,935,981 ($1.76 million) in FY 2022-23, and ¥132,637,947 ($0.91 million) in FY 2021-22.

With its registered office in Nagoya City, Aichi Prefecture, Japan, MTSKG acts as an important technology extension for SAMIL’s global operations. The acquisition will enable streamlined decision-making, improved integration, and greater strategic flexibility as the group navigates evolving market demands.

Read More: Samvardhana Motherson Shares Rally After Declaring €50 Mn Cost Cuts

SAMIL Share Performance

As of May 16, 2025, at 1:35 PM, SAMIL share price is trading at ₹145.80 per share, a surge of 1.47% from the previous closing price. Over the past month, the stock has surged by 13.60%.

Conclusion

The acquisition of the remaining stake in MTSKG reflects Samvardhana Motherson International Limited’s proactive approach to corporate simplification and global expansion. By securing 100% ownership, the company not only consolidates its interests but also enhances its operational agility and strategic footprint in the Japanese technology sector.
 

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