Maruti Suzuki India on Saturday said its shareholders have approved the proposal to issue shares on a preferential basis to Suzuki Motor Corporation (SMC) as consideration for a related party transaction for the acquisition of 100% stake in Suzuki Motor Gujarat (SMG).
The company had sought approval from its shareholders through a postal ballot on two special resolutions for the purpose of fully acquiring SMG last month.
Resolutions as set out in the postal ballot pertaining to approval of related party transaction, and create, offer, issue and allot equity shares on a preferential basis for consideration other than cash have been approved by the members of the company with requisite majority, Maruti Suzuki India said in a regulatory filing.
The first special resolution of related party transaction was approved with 98.21% in favour and 1.79% against.
The second special resolution to create, offer, and allot equity shares on a preferential basis other than cash consideration to SMC received 98.91% votes in favour and 1.09% against, it added.
Last month, the company’s board approved the acquisition of SMG for a total purchase consideration of Rs 12,841.1 crore.
It was envisaged to be discharged by way of issue and allotment of over 1.23 crore equity shares of the company having a face value of Rs 5 each to SMC, at a price of Rs 10,420.85 per equity share.
In August this year, Maruti Suzuki India’s board approved the issue of shares on a preferential basis to SMC as consideration for the acquisition of a 100% stake in Suzuki Motor Gujarat. The transaction will enhance SMC’s stake in the company to 58.28% from 56.4% currently. Post the acquisition, SMG will become a wholly-owned subsidiary of Maruti Suzuki India.
