Tata AutoComp Systems Limited announced the signing of a share purchase agreement where Tata AutoComp Systems Limited has agreed to purchase 37.5% stake in Automotive Stampings and Assemblies Limited (ASAL) from Gestamp Servicios, S.L of Spain for a price consideration of Rs. 89.50 per share. Upon the consummation of the transaction, Tata AutoComp will own 75% stake in ASAL and the balance will be held by public.
Speaking on the development, Mr. R S Thakur, ED & CEO, Tata AutoComp said; "We have identified stampings as a core business area and the move is in sync with our overall growth strategy and we expect a significant growth in this business. Â ASAL has grown to a stage where it can offer a wide range of products and services to meet the evolving demand from the Indian automobile industry."
This acquisition is a part of its consolidation strategy whereby Tata AutoComp will focus on select product lines and grow the businesses it has, in future. ASAL is the only listed company in the Tata AutoComp portfolio. With this acquisition, Tata AutoComp will have 5 subsidiaries and 6 joint ventures with leading auto-component majors.
