Mumbai, Friday, 30th April 2021 (GNI): Motherson Sumi Systems Ltd. (MSSL) in a regulatory filing has informed the stock exchanges about the outcome of the Hon’ble NCLT convened shareholder meeting. The public shareholders (non-promoter) have voted in favour of the proposal with an overwhelming majority, thus paving the way for successful completion of the proposed restructuring.
For the Hon’ble NCLT convened meeting regarding the scheme of reorganisation, the voting results showed that 99.44%of the non-promoter shareholders who voted, were in favour of the proposed restructuring (majority of minority requirement). Also, the requirement of obtaining creditors approval has been waived off by the Hon’ble NCLT for the scheme. The public shareholders also approved the resolution on Related Party Transaction (RPT) through a separate EGM held on the same day.
As next steps, post filing of the shareholder meeting documentation, the company will approach Hon’ble NCLT for second motion petition to approve the scheme. Post the approval from Hon’ble NCLT, the company will work with the stock exchanges for listing of the securities. Listing is estimated to be completed by Q2FY21 subject to the receipt of the necessary approvals.
Once the proposed reorganisation is completed, two growth focused listed companies will emerge.
1) Motherson Sumi Wiring India Ltd. (MSWIL) will be the largest listed automotive wiring harness player in India with a nationwide manufacturing footprint. MSWIL will benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) to cater to the fast-growing Indian automotive market. Also, MSWIL will bring in exciting new solutions for electric vehicle offerings from our customers.
2) Motherson Sumi Systems Ltd. (MSSL) combined with the business of Samvardhana Motherson International Ltd (SAMIL) creates a solid platform to achieve our stated Vision 2025. The company will now fully own its international business Samvardhana Motherson Automotive Systems Group BV (SMRPBV); which not only results in a simplification of the group structure and enhanced cash flows; but also, further diversifies MSSL’s revenue and product mix by addition of products like automotive lighting, shock absorbers, sheet metal, HVAC etc in line with our 3CX10 strategy.
Commenting on this development, Mr Vivek Chaand Sehgal, Chairman, MSSL said
“We thank our shareholders for their support and trust in the capabilities of Motherson. This is an important step for us to achieve the next phase of growth for our group. The existing automotive business along with the addition of the exciting new business verticals, makes us confident of achieving our Vision 2025 targets.
We would also like to take this moment to thank the front-line workers who are serving during the current wave of Covid-19. Our deepest sympathies are with the families who have lost their near ones in this battle. For us, the health and safety of our employees remain our topmost priority. We are doing our best under the circumstances to support our employees and their families,” stated in the press release.
About Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems and was listed in 1993 on BSE and NSE in India. MSSL is a focused, dynamic, and progressive company providing customers with innovative and value-added products, services, and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group, ranked 22nd among global automotive suppliers by Automotive News. (CIN – L34300MH1986PLC284510).
About Samvardhana Motherson International Limited (SAMIL) is the principal holding company of USD 10 billion Motherson Group. Besides being the holding company, SAMIL also provides operational, strategic and management support to all Motherson companies. It, has incubated several high growth businesses with market leadership positions, in addition to having partnered with global industry leaders. Excluding MSSL’s holding, SAMIL, through its subsidiaries and joint venture companies, is inter alia engaged in the business of manufacturing of automotive components and ancillaries, including automotive lighting systems, extruded and injection moulding tools and components, air intake manifolds, pedal box assemblies, heating ventilating and air conditioning (HVAC) systems for vehicles, cabins for off-highway vehicles, machined metal products, cutting tools etc. SAMIL is also leading the groups’ foray in the new business areas of Technology, Aerospace, Logistics and Health & Medical. SAMIL helps build the group’s diverse product portfolio in auto and not auto product segments and fosters deep manufacturing and design capabilities across the operating companies, to support a wide spectrum of ever-evolving customer requirements. To know more about Motherson, please visit www.motherson.com
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