Motherson Sumi Systems Limited (BSE:517334) agreed to acquire Samvardhana Motherson International Limited on July 2, 2020. Under the terms of the transaction, for every 10 shares held in Samvardhana Motherson, 51 shares of Motherson Sumi Systems would be allotted. Post completion, Samvardhana Motherson International will operate as a wholly owned subsidiary of Motherson Sumi Systems. Upon completion, Motherson Sumi Systems will be renamed as Samvardhana Motherson International Limited. Transaction is subject to receipt of regulatory and other approvals inter-alia approval from shareholders, creditors, NCLT etc. as may be applicable. The Board of Directors of Motherson Sumi Systems and Samvardhana Motherson International approved the transaction. Transaction was approved by NCLT as of March 25, 2021 and a directed that the meeting of the shareholders of the Motherson Sumi Systems Limited be convened on April 29, 2021 to consider approval of Scheme. The transaction is likely to be completed by second quarter of 2022. The transaction is expected to be EPS accretive in 2022, the first year of merger.

Axis Capital Ltd. and DSP Merrill Lynch Limited are acting as financial advisors and fairness opinion providers to Motherson Sumi Systems. Kotak Investment Banking is acting as financial advisor and fairness opinion provider to Samvardhana Motherson International. Price Waterhouse & Co. LLP and BSR & Associates LLP acted as accountants to Motherson Sumi Systems and Samvardhana Motherson International. AZB & Partners are the legal advisor to the transaction. As of December 23, 2021, NCLT has sanctioned the Scheme.

Motherson Sumi Systems Limited (BSE:517334) completed the acquisition of Samvardhana Motherson International Limited on January 10, 2022.