India’s biggest auto components manufacturer Motherson Sumi System Ltd. has offered to buy Finnish truck wire harness maker PKC Group for 571 million euros (₹4,146 crore) to expand global presence.
Motherson has offered 23.55 euros per PKC share, representing 51% premium to the closing price on Thursday, in a public tender. The acquisition is expected to be completed by the end of March, Motherson said in a statement.
PKC in a separate statement said its board is backing the offer. “Combining the companies will create a leading supplier of wiring systems and components for the worldwide transportation industry.”
Market access
While Motherson will gain access to PKC’s presence in the U.S. and European commercial vehicle markets, the merger will help the Finnish company expand in the Asia Pacific region.
At a meeting of its board of directors on January 19, Motherson had approved a proposal to begin a voluntary, recommended public tender offer for the acquisition of the outstanding share capital and voting rights of PKC Group Plc, Finland.
“PKC shareholders are being offered a cash consideration of euro 23.55 for each share/options in PKC representing an aggregate equity purchase price of approximately euro 571 million in an open tender offer,” the Indian company said in the statement.
Shares of PKC are now listed on the Nasdaq Helsinki stock exchange. — PTI
