NEW DELHI: Japanese auto parts maker JTEKT Corporation plans to acquire a 25% stake in Sona Koyo Steering Systems from its Indian partner Sona Group for Rs 575-625.1 crore, two people familiar with the matter told The Economic Times. This concludes a 32-year-long partnership Between the two parties.

It is believed that Jettygate has made a bid of Rs 115-1255 per share to Sona owned by the Kapur family of Sona Group, which valued the joint venture at Rs 2300-2500 crore as compared to the current capitalization of Rs 145 crore, which is more than 50 percent higher.

Karisma Kapoor’s ex-husband Sanjay Kapoor is Sona Koyo His father Surinder Kapoor is the founding chairman of the company.

A spokesman for Sona Koyo Steering Systems did not respond to email inquiries, phone calls, or Whatsapp messages. Jettygate did not respond to email queries. “The planned acquisition is in line with the Japanese auto parts maker’s strategy to consolidate its business in India by acquiring local partners as India offers more opportunities in the auto parts industry with Japanese partners offering huge premiums.

These are mainly suppliers to Maruti Suzuki and similar deals are expected in India. “The two sides are hoping to reach a binding agreement by next month,” a person familiar with the matter said. “This would be the first agreement between India and Japan’s longtime automotive partner since 2010, the year Hero Since parting ways with Honda.” . Negotiations began in 2015 when Surinder Kapoor was in power, but were delayed for more than a year after his sudden death in July 2015 and discussions resumed only in the second half of 2016.

The Indian promoters hold 25.28% stake in the joint venture, while Japan holds 20.1%. Maruti Suzuki, the company’s major customer, holds 6.94% stake and the rest is held by retail and institutional investors. Upon completion of the transaction, Jettygate plans to purchase 25% of the shares under the additional offer from existing investors through an open offer.

Sona Koyo Steering Systems, the flagship company of the Sona Group, is one of India’s largest manufacturers of steering systems for passenger cars and utility vehicles, specializing in passenger cars, utility vehicles and light commercial vehicles. The company initially supplied steering systems to Maruti Suzuki, but has diversified its customer base over the years.

JTEKT Corporation (formerly Koyo Seiko Co Ltd), a market leader in Japan, recently announced a merger with the former Toyota Machine Works. The merger will make JTEKT the world’s largest manufacturer of steering systems. Sona Koyo customers include leading Indian automobile manufacturers including Maruti Suzuki, Toyota, Hyundai, Tata Motors, Mahindra & Mahindra, General Motors and Mahindra & Renault. Through a network of overseas joint venture partners, we independently export quality precision products to the US, Europe and Japan.