Motherson buys control of China's Shenzhen Autocruis in $22.6M deal
What's the deal? Samvardhana Motherson InternationalDealroom has a profile for this one. Try Dealroom → will acquire a controlling stake in China's Shenzhen Autocruis TechnologyDealroom has a profile for this one. Try Dealroom → through its indirect wholly owned subsidiary, SMR Automotive (Langfang)Dealroom has a profile for this one. Try Dealroom →. The initial acquisition covers a 64.76% equity stake, bought via a primary capital increase of CNY 153.3 million — about $22.6 million — through fresh equity.
What's the structure? Motherson will subscribe to newly issued equity of Shenzhen Autocruis on a fully diluted basis. After the deal closes, Shenzhen Autocruis will run a buy-back of its equity, lifting SMR Langfang's holding to 67.78%.
What's next? On August 17, SMR Langfang also signed a share purchase agreement with existing shareholder RTVF VenturesDealroom has a profile for this one. Try Dealroom → to buy an additional 0.15% stake for CNY 3 million, or roughly $440,000. Subject to customary closing conditions, that secondary purchase would raise Motherson's holding to 67.93%.
Samvardhana Motherson International shares closed at ₹168.06 on the National Stock Exchange on August 17, down 0.14% from the previous close.
The signal: The deal deepens the auto-components maker's foothold in China's supply chain, layering a majority stake through fresh capital with a smaller secondary buy to consolidate control.
Read more: CNBC-TV18
Image credit: jurvetson
