Honda Motor Corp's exit from the world's largest two-wheeler manufacturer Hero Honda is apparently stuck over differences in valuation of its 26 per cent stake. Sources close to the companies told Hindustan Times that so far Honda has only informed Munjals, the promoters of Hero Group who hold
At present, with the Hero Honda share trading at Rs 1,736, Honda's stake is worth over
Rs 9,000 crore but the PE firms feel that post-exit, the scrip would trade much lower.
"Honda provides the technological back up to the firm. Hero Group's reach in dealer network now virtually covers every corner of the country. It is learnt that Honda intends to invest part of the stake sale proceeds in HMSI, its fully-owned subsidiary.
It earlier touched a high of Rs1,746.95 after opening at Rs1,727. Honda has decided to exit Hero Honda as it focuses more on its fully owned two wheeler subsidiary in India, Honda Motorcycle and Scooter India. The Munjal family will reportedly form a special purpose vehicle (SPV) to buy out Honda's entire 26% stake in Hero Honda. A foreign bank will reportedly extend a loan to the SPV to buy Honda’s 26% stakeSource URL: https://theconstantarchitect.blogspot.com/2010/09/hero-honda-shares-down-in-strong-market.html
Visit the constant architect for Daily Updated Hairstyles Collection
