Hindustan Motor To Sell Chennai Property
Hindustan Motors Limited plans to raise Rs 25 Cr by selling off a property in Chennai.
The cash from the property sale will help the company temporarily as it suffers from accumulated losses of Rs 132.28 Cr as on March 31. The company reported net loss of Rs 19.73 Cr at the end of the first quarter to June 2010 with capital erosion of 90%.
Hindustan Motors may also consider selling stake in Avtec Ltd.
Transaction Reference: TOI
In 2005, Hindustan Motors had transferred its component business to Avtec and sold a part of its stake in Avtec to private equity player Actis Capital LLP and other promoter group entities.
The enterprise valuation of Avtec then worked out to Rs 423 Cr. Hindustan Motors, Actis and promoter group at present hold approximately 49%, 30% and 21% respectively in Avtec.
In June, rumor had it that General Motors, Mitsubishi Motors Corp and Isuzu Motors Ltd had started preliminary negotiations separately for buying a holding in Hindustan Motors.
The company's plant in the southern city of Chennai, with a annual capacity of 12,000 vehicles, was a likely target for acquisition.
The company makes the Ambassador at another plant in Uttarpara in West Bengal and hopes to increase sales by a third to 12,000 units in the current year to March 2011.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 11/08/10 | Avtec Ltd - Hindustan Motors (Stake Sale) | M&A | Looking For | - |
| 28/02/05 | AVTEC Limited - Actis LLP | Private Equity | Actis LLP | 17.80 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 06/02/12 | M&A | OCL Iron and Steel Limited | Aron Auto Limited | - | Completed |
| 05/01/12 | M&A | Ring Plus Aqua Limited | Trinity India Limited (Formerly Trinity Die Forgers Limited) | - | Announced |
| 04/01/12 | M&A | JBM Cadmium Private Limited | TescoGo SPA | 37.62 | Completed |
| 02/01/12 | M&A | Varroc Engineering Private Limited | TriOM SPA | - | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Hindustan Motors Limited | National Bearing Company Jaipur Limited | Birla Building, 9/1 Rajendra Nath Mukherjee Rd, Kolkata-700001. West Bengal, India. |
Force Motors Limited Maruti Suzuki India Limited SML Isuzu Limited (Formerly Swaraj Mazda Ltd) |
www.hindmotor.com |
| Avtec Limited | Hindustan Motors Limited | Pithampur Industrial Area Sector III, Pithampur, Sagore – 454774 Dist. Dhar Madhya Pradesh,India |
Amtek Auto Limited Precision Camshafts Limited |
www.avtec.in |
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