Auto parts maker Talbros Automotive Components Ltd (TACL) on Friday said its board of directors has approved the divestment of its entire 40% stake in its JV firm Nippon Leakless Talbros.
Following the stake sale by TACL, Nippon Leakless will own 100% of the company, Talbros Automotive Components said in a statement.
Talbros had formed the JV with Nippon Leakless in 2005 with the two partners owning 40% and 60% stake in it, respectively, to manufacture gaskets for major two-wheeler Original Equipment Makers (OEMs).
"In a strategic review of the business, the board of directors have approved the divestment of its entire 40% equity stake in Nippon Leakless Talbros," said TACL Joint Managing Director Anuj Talwar.
TACL has a diversified portfolio of gaskets, heat shields, forgings, suspension systems, anti-vibration products and hoses.
With the JV company valued at Rs 204.5 crore, Talbros Automotive said, it will realise Rs 81.8 crore from the stake sale, adding that the transaction is subject to certain conditions and is expected to be completed in the March quarter of this fiscal.
The component maker said it intends to utilise the proceeds for its future capex and expansions.
"The proceeds will also help us invest in business to capitalise on the strong acceptance of our products by both marquee domestic and international automotive OEMs," said Talwar.
"We believe the proceeds of this stake sale will help us further enhance the true potential of our product portfolio and capabilities as also to explore new opportunities," Talwar stated.
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