Lumax Auto Technologies Limited cancelled the acquisition of Automotive rota moulded plastic component business of OK Play Auto Private Limited.
February 23, 2021
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Lumax Auto Technologies Limited (NSEI:LUMAXTECH) by way of slump sale arrangement agree to acquire Automotive rota moulded plastic component business of OK Play Auto Private Limited on February 24, 2020. Consideration will be paid in cash. Initial Purchase Consideration that is 90% of enterprise value based on EBITDA multiple of 5.67 times, to be applied on 3 years average of Auto component business to be paid upfront on transaction closing and balance 10% of consideration shall be computed and paid 6 times of EBITDA of FY 2023. The balance purchase consideration will be paid by July 31, 2023, subject to certain adjustments in accordance with definitive agreements. In addition, LATL to provide a loan of INR 200 million to Ok Play on closing, at simple interest of 12% per annum, to be repaid by OK play along with interest, by July 25, 2023. Loan to be secured against Balance Purchase consideration. For year ended March 31, 2019, Auto component Business had revenue of INR 1.3 billion and EBITDA of approximately INR 380 million. Transaction is subject to Definitive agreement. Intended execution of definitive agreements and closure of the transaction by March 31, 2020. As of June 13, 2020 due to unprecedented pandemic situation and extended lockdowns disrupting business continuity, the proposed acquisition is being put on hold, pending further review and appropriate decision in future.
Lumax Auto Technologies Limited (NSEI:LUMAXTECH) cancelled the acquisition of Automotive rota moulded plastic component business of OK Play Auto Private Limited on February 24, 2021.
Lumax Auto Technologies Limited is an India-based manufacturer and supplier of automotive molded and fabricated parts, emission and transmission systems for the automotive industry. The Company specializes in designing, testing and manufacturing of gear shifters and interior solutions. The Company has a diversified product portfolio, which comprises integrated plastic modules, two-wheeler chassis, two- and three-wheeler lighting, gear shifters, transmission products, emission systems, seat structures, telematics products and services, oxygen sensors, and on-board antennas, electric devices and components, and aftermarket solutions. This portfolio further encompasses vehicle interior systems and components. The Company has approximately 23 manufacturing plants across India. Its subsidiaries include Lumax Mannoh Allied Technologies Limited, Lumax Comaglia Auto Technologies Private Limited, Lumax Management Services Private Limited and Lumax FAE Technologies Private Limited.