Yachiyo India Manufacturing, the Indian subsidiary of Yachiyo Industry Co. Limited, is to be fully acquired by Samvardhana Motherson International Limited (SAMIL) through its subsidiary MSSL Mideast by March-end 2024. Yachiyo Industry Co. is engaged in production of automobile parts like sunroofs, fuel tanks and resin products.
“MSSL Mideast (FZE) which is a 100% subsidiary of SAMIL will acquire 100% of Yachiyo’s Indian subsidiary i.e., Yachiyo India Manufacturing Private Limited (YIM). Subject to completion of other ongoing conditions precedents for the transaction, the closing is now expected to be completed within March 2024,” Samvardhana Motherson said in a regulatory filing on March 19, 2024.
As per the regulatory filing, this acquisition is part of a deal between Samvardhana Motherson and Honda Motor Co Limited.
Deal between Motherson and Honda Motor
According to a regulatory filing by Samvardhana Motherson International Limited (SAMIL) dated November 21, 2023, Honda Motor which owned 50.4% stake in listed entity Yachiyo would buy out the entire public stake in Yachiyo and make it a wholly-owned subsidiary. “Subsequently, SAMIL will acquire 81% equity in remaining Yachiyo 4W business thereby forming an 81:19 Joint Venture with Honda Motor,” SAMIL said in the regulatory filing dated November 2023.
However as part of this deal Yachiyo’s 2W business (housed under Goshi) will get transferred to Honda Motor.
Samvardhana Motherson had stated in its regulatory filing dated March 19, 2024, “Post completion of the tender offer, Honda Motor had acquired the remaining stake in Yachiyo thus making the company a wholly-owned subsidiary of Honda Motors. This acquisition is done via a squeeze out process as defined by the Japanese regulations on January 12, 2024.”
