Car parts maker from India, Amtek Auto's shares have surged following the announcement by the company about its asset sale expansion by including additional overseas businesses in the sale. This comes as a process to reduce the debt that has been mounting on its balance sheet for a long time. In a report Bloomberg, citing sources said that Amtek has appointed a financial hosting company Rothschild & Co. for advice of sale of operations based overseas. People familiar with the matter have said that if the entire sale does not work out, Amtek should be open to selling its overseas units, and also burdened with debt Indian subsidiaries.
In a report Bloomberg, citing sources said that Amtek has appointed a financial hosting company Rothschild & Co. for advice of sale of operations based overseas. By selling its non-core business and overseas assets Amtek plans to cut down debt, as its has been cash strapped recently. Musashi Seimitsu Industry Co. and Bharat Forge Ltd. last year wanted to bid for Amtek' German unit. Amtek which supplies car parts to Ford Motor Co. and Aston Martin Holdings UK Ltd. has expected to get $1 billion. Potential Chinese bidders as well as private equity investors, have been contacted by the company, the sources told Bloomberg. At March end, Amtek owed a net debt of Rs 147 billion. Last year the company reported a loss of Rs 987 crore for by the end of September, and had Rs 12200 crore in debts.