"Maruti Suzuki Board Greenlights ₹12,841 Crore Acquisition of Suzuki Gujarat"

In a pivotal decision, the Board of Directors of Maruti Suzuki India (MSIL) met on Tuesday and gave its official nod to the acquisition of 12,84,11,07,500 equity shares of ₹10 each, constituting the entire paid-up equity share capital of Suzuki Motor Gujarat (SMG). SMG is currently owned by Suzuki Motor Corporation, Japan (SMC). The acquisition will come at a total cost of ₹12,841.1 crore.

Maruti Suzuki India is set to fulfill this purchase by issuing and allotting 1,23,22,514 equity shares of the company, each with a face value of ₹5, to SMC. These shares will be valued at ₹10,420.85 per equity share, and the transaction will occur through a preferential allotment.

However, the acquisition of the purchase shares is contingent upon securing the necessary regulatory and statutory approvals as mandated by applicable laws. This process will also require the endorsement of the minority shareholders of the company, which will be obtained through a postal ballot, as disclosed by MSIL in its filing to stock exchanges.

HBL