JTEKT Corporation (TSE:6473) made an offer to acquire an additional 26% stake in Sona Koyo Steering Systems Limited (BSE:520057) for INR 4.3 billion on February 1, 2017. Under the terms of the agreement JTEKT Corporation will acquire 51.67 million shares in Sona Koyo Steering Systems at a price of INR 84 per equity share in cash. The transaction will be financed from internal resources of JTEKT Corporation. JTEKT Corporation has also been sanctioned an unconditional and irrevocable line of credit of INR 3.3 billion by Sumitomo Mitsui Banking Corporation. In a related transaction JTEKT Corporation (TSE:6473) entered into a share purchase agreement to acquire additional 25.1% stake in Sona Koyo Steering Systems Limited (BSE:520057) from Sona Autocomp Holding Private Limited for approximately INR 4.2 billion on February 1, 2017. The offer will be open on March 29, 2017 and closing will be done on April 12, 2017. The last date for offer price revision is March 22, 2017. As of February 8, 2017 detailed public statement for tender offer has been filled. As of May 23, 2017, the offer will be open on May 29, 2017 and closing will be done on June 12, 2017. As of May 23, 2017, the last date for offer price revision is revised to May 24, 2017. The offer will be open on May 30, 2017 and closing will be done on June 12, 2017. The last date for offer price revision is May 24, 2017. The last date of communicating acceptance and rejection is June 27, 2017.

The transaction is subject to receipt of approval from the Competition Commission of India and approval from Reserve Bank of India (when shares are tendered by NRIs and OCBs). The offer is not subject to any minimum level of acceptance or approvals from financial institutions or banks. The Board of Directors of Sona Koyo Steering Systems Limited constituted a committee of independent Directors comprising of Ramni Nirula, Prem Kumar Chadha, Prasan A. Firodia for the purpose of providing recommendation on the open offer to the shareholders of Sona Koyo Steering Systems Limited. The committee has recommended the offer to be fair and reasonable. On May 5, 2017, the transaction was approved by the Competition Commission of India. As of June 26, 2017, post open offer advertisement has been filled.

Kotak Mahindra Capital Company Limited is the manager to the offer made by JTEKT Corporation. Kotak Securities Limited acted as buying broker in this transaction. Karvy Computershare Private Limited acted as registrar to JTEKT Corporation. Indbank Merchant Banking Services Limited (BSE:511473) acted as independent advisor. Rajesh Thakkar of MZSK & Associates acted as an accountant for JTEKT Corporation.

JTEKT Corporation (TSE:6473) completed the acquisition of an additional 25.2% stake in Sona Koyo Steering Systems Limited (BSE:520057) for INR 4.2 billion on June 22, 2017. Pursuant to the offer, JTEKT Corporation acquired 50.2 million Sona Koyo Steering Systems Limited shares.