Uno Minda to acquire Kosei’s stakes in KMA and KMM JVs for Rs 71cr

Uno Minda (previously Minda Industries) said that its board has sanctioned the company’s plan to acquire a stake of 81.69% in Kosei Minda Aluminum Company (KMA) and a 49.9% stake in Kosei Minda Mould (KMM) from its Japan-based joint venture (JV) partner Kosei.

According to the Indian automotive solutions and systems provider, the acquisition will be executed via composite scheme of merger with it through swapping of shares.

The deal gives an enterprise value of INR 60 crores and INR 11 crores for Kosei Minda Aluminum and Kosei Minda Mould, respectively.

Based in Chennai, Kosei Minda Aluminum is engaged in manufacturing alloy wheels and precision aluminum die casting parts for car manufacturers and aftermarket.

Kosei Minda Mould is involved in manufacturing and developing molds, tools, and dies to be used by car manufacturers and the auto component industry.

The closing of the merger will be subject to various statutory authorities, following which Uno Minda will start running the operations and business of both entities beginning in April 2023.

The company is also expected to enter into an agreement for technical licenses with Kosei Japan for 10 years which will be thereafter renewed with the mutual agreement of both parties in order to ensure the continued provision of technical assistance.

Sunil Bohra — Uno Minda Group CFO said: “We have been extremely positive on 4W Alloy wheel industry which is expected to grow around 4 times over next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth.

“The proposed transaction is one more step towards gaining significant pie of this growing 4W Alloy wheel market, simplification of the group structure and to facilitate achievement of economies of scale.”