Gabriel to buy 30% stake in HL Klemove India for Rs 948 crore

Gabriel India said on Tuesday it will acquire a 30% stake in HL Klemove India from South Korea's HL Klemove for about Rs 948 crore, marking its entry into the autonomous driving and automotive electronics business in India through a joint venture with the Korean company.

The company's board approved the purchase of 37.84 million equity shares of HL Klemove India for the rupee equivalent of USD 98.44 million. The acquisition will give Gabriel a holding of 30% minus one share in the company, while HL Klemove will retain 70% plus one share.

The two companies will also enter into a joint venture agreement to jointly develop and manufacture autonomous driving and automotive electronics products in India. Gabriel said the partnership would allow it to participate in the fast-growing market for advanced vehicle technologies.

HL Klemove India develops products including radar, front cameras, LiDAR, automated driving and parking control units, ADAS software, brake and steering electronic control units, chassis control units, fuel pump controllers and torque sensors.

The acquisition will be completed in two stages, with 75% of the purchase price payable at closing and the remaining 25% to be paid later in accordance with the share purchase agreement. The first tranche is expected to close on or before September 15, while the second payment is scheduled within 18 months of signing the agreement.

Following the transaction, the joint venture will be governed by a 10-member board, with HL Klemove nominating six directors and Gabriel nominating four. Certain key decisions will require the approval of both partners.