Maruti Suzuki India has said its Board has approved a proposal to execute a share purchase agreement to acquire 100% equity capital of Suzuki Motor Gujarat (SMG) from Suzuki Motor Corporation (SMC). The auto major has executed the share purchase and subscription agreement (SPSA) with SMC and SMG to acquire 12,84,11,07,500 shares of Rs 10 each, representing 100% equity capital of SMG owned by SMC, for a total purchase consideration of Rs 12,841.1 crore, Maruti Suzuki India (MSI) said in a regulatory filing.
The consideration payable by the company for such purchase of 100% of SMG’s equity shares shall be discharged by way of issue and allotment of 1,23,22,514 equity shares of the company having face value of Rs 5 each to SMC, at a price of Rs 10,420.85 per share, on a preferential basis, it added.
Voting for shareholder approval begins on Wednesday and will go on for a month. In August, the company’s Board had approved issuance of shares on a preferential basis to SMC as consideration for acquisition of 100% stake in SMG.