CHENNAI, India – Last year ZF announced it would divest itself of its stake in Brakes India Private Limited, a joint venture with TVS which controls some 55-60 percent of the country’s brake market, and according to media reports, it has found a buyer. A post on TheHinduBusinessLine.com reported India Motor Parts & Accessories (IMPAL), which is a part of the TVS Group, would purchase the ZF portion of Brakes India.
ZF Stake in Brakes India Up for Sale
The deal is reported to be for ₹70 crore.
The following is excerpted from the post:
“The board of the company today approved the acquisition of 36,874 equity shares of ₹100 each representing 1.54 per cent in Brakes India from the foreign promoter ZF International UK Ltd for a total sum not exceeding ₹70 crore,” the company said in a filing to stock exchanges.
Pursuant to the acquisition of Wabco Holdings by ZF AG, Germany, the Competition Commission of India had directed the foreign promoter of Brakes India, ZF International UK Ltd, a subsidiary of ZF AG, to disinvest its entire stake of 49 per cent held in Brakes India. The said acquisition by IMPAL is pursuant to the divestment steps undertaken by ZF.
Brakes India, engaged in manufacture of braking systems for cars and commercial vehicles, reported revenue of ₹3,990 crore in FY20 compared with ₹4,896 crore in FY19. Its PAT stood at ₹246 crore against ₹474 crore. Its net worth was ₹2,441 crore in FY20.
The entire post can be viewed by clicking HERE.