Sang Yang of Taiwan to buy 15% in Kinetic- The Times of India: “MUMBAI/NEW DELHI: Two of Honda’s former partners are joining forces to take on the Japanese giant’s might in the Indian two-wheeler market.
Firodia family-run Kinetic group has decided to sell 14.9% stake in Kinetic Motor Co to Taiwan’s second largest scooter maker Sang Yang Motors (SYM) as part of plans to expand presence in the two-wheeler market in India.
The deal – worth around Rs 40 crore – would give Kinetic access to a range of gearless scooter, step-thru and motorcycle models that SYM builds in Taiwan.
‘Besides helping Kinetic expand its portfolio of two-wheelers, it will give Kinetic the financial muscle to invest in the two-wheeler market,’a source said.
The final agreement for the stake sale is expected to be inked on Tuesday. Ambit Corporate Finance and HSBC Capital Markets are the advisors for the deal, sources said.
SYM has over 31% share of the Taiwan scooter market. The firm makes scooters under the Atilla and Excel brands.
The deal will mark a complete U-turn for the Kinetic group, which had – five years back – bought out Honda’s 50% stake in a JV and decided to ride solo in the two-wheeler market.
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Tue, Jan 10, 2006
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