SAIC Motor, China's largest automaker, said its India business unit will receive a US$624 million injection from local investors led by Indian steelmaker JSW Group in a deal to drive the Chinese company further into the world's third largest car market, reports Caixin.
As part of the deal, JSW will acquire a 26 per cent stake in MG Motor India from a SAIC unit for INR26.5 billion (US$307 million). The Indian company and other investors will put an additional INR25.6 billion into MG Motor India, according to a filing by SAIC.
The transactions will reduce SAIC's ownership of MG Motor India to 49 per cent, while JSW holds 35 per cent. The remaining 16 per cent of the company will be held by financial institutions in India, company employees and dealers, according to the filing.
SAIC said the equity sale enables it to recoup most of its investment, and the local partnerships will support the expansion of the business in India while maintaining the Chinese firm's control over technology and brand integrity.
The deal has been approved by regulatory authorities in China and does not constitute a related transaction, said SAIC.
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As part of the deal, JSW will acquire a 26 per cent stake in MG Motor India from a SAIC unit for INR26.5 billion (US$307 million). The Indian company and other investors will put an additional INR25.6 billion into MG Motor India, according to a filing by SAIC.
The transactions will reduce SAIC's ownership of MG Motor India to 49 per cent, while JSW holds 35 per cent. The remaining 16 per cent of the company will be held by financial institutions in India, company employees and dealers, according to the filing.
SAIC said the equity sale enables it to recoup most of its investment, and the local partnerships will support the expansion of the business in India while maintaining the Chinese firm's control over technology and brand integrity.
The deal has been approved by regulatory authorities in China and does not constitute a related transaction, said SAIC.
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