NEW DELHI: Sona Autocomp Holding Limited today announced the signing of an agreement with its long term technology and financial partner, JTEKT Corporation, for the sale of its entire stake in Sonaa Koyo Steering Systems Limited (SKSSL) for Rs. 41.9 for Rs. 100 million.

The total cost is Rs. 419.28 crore for 49, 914, 664 shares at Rs. 84.00 per share, which is equivalent to 25.12% of SKSSL shares.

SKSSL It is a manufacturer of steering systems for passenger cars and utility vehicles in India. The company travels to Maruti Suzuki, Toyota, Tata Motors, Mahindra Mahindra, Honda, Renault Nissan, Ford and others to supply steering components.

SKSL has a transaction value of Rs. 1,922.5 crore, equivalent to Rs. 1,010 crore. x times SKSSL’s EBITDA for the last 12 a month ended September 30, 2016 84.00 per share Higher share price in rupees compared to SKSSL Average closing price premium for the last three months is around 34%.

The transaction is still subject to regulatory approval from the Competition Commission of India and other conditions mentioned in the agreement.

Jettygate also announced that it will issue an additional 51, 672, 877 shares through a public issue. This amounts to a 26% increase in the price of Rs. 84.00 per share of the existing equity share capital of Sonaa Koyo, totaling Rs. 434.05. Millions. It is expected that the transaction will be completed in the first quarter of the financial year, which is expected to take place on August 18, 2017, subject to approval and completion of the terms and conditions mentioned in the agreement.

Once the said transaction is completed and the subscription to the open offer is finalized, Jetty will increase its stake in the company from the current 20.10% to 71.22%.

Sunjay J Kapur and Sona Group acting directors Rani Kapur and Kiran Deshmukh are expected to resign. He will start with SKSLSL after completion of the transaction. Board of Directors to remove their names.

Sunjay Kapur “This deal is a step in the transformation of Sonaa in which we can now focus, invest and work on ‘Sona Autocomp Holding Limited 2007’.

In this transaction, JM Financial Instrumental Securities Limited acted as the exclusive financial advisor to Sona Autocomp Holding Limited and Cyril Amarchand Mangaldas acted as the exclusive legal advisor.