Samvardhana Motherson International (SAMIL) has announced that its acquisition of 81 percent stake in Yachiyo 4W (Y4W) business housed under Yachiyo Industry (Yachiyo) from Honda Motor could be completed by Q4 of FY2024 as against Q1 of FY2025.
It was on July 4, SAMIL had announced that it will acquire 100% paid-up equity capital of Yachiyo India a wholly-owned subsidiary of Yachiyo. The transaction consummation required merger control approvals, which have been received from concerned merger control authorities in USA, Brazil and China.
Furthermore, as per the transaction structure, Honda Motor launched a tender offer to acquire the remaining 49.6 percent stake in Yachiyo on October 5, which was closed on November 20. As a result, Honda Motor has been able to acquire 91.83 percent stake from public shareholders, which is more than 66.7 percent but less than 100 percent paid-up equity capital of Yachiyo.
As a next step, Honda Motor plans to implement a series of procedures to make it the sole shareholder of Yachiyo. Subject to completion of other conditions precedents, the transaction will be closed after Honda Motor has made Yachiyo a wholly-owned subsidiary.
