JTEKT Corporation (TSE:6473) (‘JTEKT') entered into a share purchase agreement to acquire additional 25.11% stake in Sona Koyo Steering Systems Ltd. (BSE:520057) from Sona Autocomp Holding Private Ltd. for approximately INR 4.2 billion on February 1, 2017. JTEKT will acquire 49.9 million shares in Sona Koyo Steering Systems at a price of INR 84 per equity share in cash. Post-closing, JTEKT will hold a 45.2% stake in Sona Koyo Steering Systems. On completion, nominee Directors comprising of Sunjay Kapur (including as Chairman), Rani Kapur, Kiran Manohar Deshmukh from the Board of Directors of Sona Koyo Steering Systems, Sunjay Kapur (including as Chairman) and Kiran Manohar Deshmukh from the Board of Directors of Sona Fuji Kiko Automotive Ltd. and Sunjay Kapur (including as Chairman and Managing Director) and Kiran Manohar Deshmukh from the Board of Directors of JTEKT Sona Automotive India Ltd. will resign.

The transaction is subject to third party approvals and approval by JTEKT Board. On May 17, 2017, the transaction was approved by Competition Commission of India. The transaction is expected to close in second quarter of 2017.

Kotak Mahindra Capital Company Ltd. (‘Kotak') and SMBC Nikko Securities Inc. acted as a financial adviser to JTEKT. Kotak is also the manager to the offer made by JTEKT. JM Financial Institutional Securities Ltd. acted as a financial adviser and Cyril Amarchand Mangaldas acted as a legal adviser to Sona Autocomp Holding.

JTEKT Corporation (TSE:6473) completed the acquisition of an additional 25.11% stake in Sona Koyo Steering Systems Ltd. (BSE:520057) from Sona Autocomp Holding Private Ltd. on May 18, 2017.