Swaraj Mazda on Thursday said its Japanese collaborator Sumitomo Corporation has proposed to buy an additional 15.62 per cent stake from Mazda Motor Corporation.
Sumitomo corporation has proposed to acquire 16,38,000 shares aggregating to15.62 per cent stake of Swaraj Mazda from Mazda Motor Corporation, also a foreign collaborator in the company, subject to conclusion of the share transfer agreement, the automobile maker informed the National Stock Exchange.
The proposed acquisition price per share is yen 768 per share and the shareholding of Sumitomo Corporation after the proposed acquisition will be 43,03,000 shares aggregating to 41.03 per cent of the voting rights of Swaraj Mazda Ltd, it added. The date of proposed acquisition is August 18, 2005 or later.
At present major groups of shareholder in Swaraj Mazda include Punjab Tractors Ltd holds (14.1 per cent), Mazda Motor Corporation, Japan (15.6 per cent), Sumitomo Corporation, Japan (25.4 per cent), Mutual funds/nationalised banks (5.5 per cent), FIIs (9.3 per cent) and public (30.1 per cent).
Sumitomo had earlier made the proposal to hike its stake in Swaraj Mazda on the ground that its larger involvement in Swaraj Mazda was crucial for forging of an alliance with a Japanese company.
Swaraj Mazda required to have a fresh technical alliance as the previous one with Mazda Motor Corporation expired. Mazda had also withdrawn from the manufacture of commercial vehicles. Sumitomo also began negotiation with a Japanese commercial vehicle maker for forging a technical assistance as well as new range of vehicles, they added.
Punjab Tractors had set up Swaraj Mazda for manufacture of light commercial vehicle nearly 20 years ago in association with Mazda Motor Corporation and Sumitomo. Swaraj Mazda is the only surviving joint venture out of four Indo-Japanese light commercial vehicle makers that were set in 1980s.
