With close to 99% votes in favour, minority shareholders give a thumbs-up to Maruti Suzuki forthe acquisition of Suzuki Motor Gujarat.
Maruti Suzuki India Limited (MSIL) minority shareholders today voted to approve the allotment of preference shares to Suzuki Motor Corp for the acquisition of Suzuki Motor Gujarat.
MSIL board of directors in October had approved the acquisition of 12,84,11,07,500 equity shares of Rs 10 each representing 100% paid-up equity share capital of Suzuki Motor Gujarat Private Ltd, a wholly owned subsidiary of Suzuki Motor Corp, for a total purchase consideration of Rs 12,841.1 crore, via the allocation of preference shares to Suzuki Motor Corp.
The acquisition is expected to be completed by the end of FY24, After the acquisition, Suzuki Motor Gujarat Private Limited (SMG) will become a wholly owned subsidiary of Maruti Suzuki. Following the issuance of shares, Suzuki Motor Corporation's stake in Maruti Suzuki will increase from 56.48 percent to 58.19 percent.