Samvardhana Motherson International is buzzing loud and clear; the stock opened 7% higher today at Rs.90.61 and went on to rise and hit a new 52-week high at Rs.92.50. This was on the back of over 1.5x surge in volumes.
The stock price hit a new high after the company said that it will be acquiring an 81% stake in the 4-wheeler business of Yachiyo Industry, a Honda Motor (Japan) subsidiary, for a cash consideration of around $120 million.
Motherson will form an 81:19 strategic partnership with Honda Motor where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies.
Yachiyo Industry is a publicly listed (Tokyo Stock Exchange) subsidiary of Honda Motor which comprises four-wheeler (4W) and two-wheeler (2W) businesses. As a part of the overall transaction, the 2W business (housed under Goshi Giken) will be transferred to Honda Motor before Motherson acquires an 81 per cent stake in Yachiyo’s 4W business.