How Motherson Sumi restructuring will impact investors? Anil Singhvi speaks to Chairman VC Sehgal | All details here
In view of the group restructuring plan approved by auto components major Motherson Sumi Systems Ltd (MSSL), Zee Business Managing Editor and Market Guru Anil Singhvi on Monday spoke to MSSL Chairman Vivek Chaand Sehgal.
In view of the group restructuring plan approved by auto components major Motherson Sumi Systems Ltd (MSSL), Zee Business Managing Editor and Market Guru Anil Singhvi on Monday spoke to MSSL Chairman Vivek Chaand Sehgal. Auto components major Motherson Sumi Systems Ltd (MSSL) on Thursday had announced a group restructuring under which it will demerge its domestic wiring harness (DWH) business into a new company that will eventually be listed. The reorganisation has been approved by the respective boards of MSSL and group firm Samvardhana Motherson International Ltd (SAMIL).
When Anil Singhvi asked Sehgal about the rise in promoters' stake post-restructuring exercise, he replied, "Actually, the main company will split into two parts, and it will create a mirror image for investors. It's an investor-friendly move."
Moreover, Singhvi in the interest of investors, asked Sehgal about the valuation details. Sehgal said, "Motherson Sumi is a complex company; it is not easy to understand the process, and ups and downs in share prices keep happening. When some people don't understand the process, they panic. Now, we have explained everything and now the share prices are quite stable. The valuation has been done quite fairly."
Moreover, Anil Singhvi asked about the key objective behind the entire group restructuring exercise and how minority shareholders will benefit from the entire process of restructuring. Replying to the question, Sehgal said, "If you completely understand the entire process, you will get to know that this group restructuring exercise will prove highly beneficial to investors."
WATCH FULL INTERVIEW HERE:-
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As part of the restructuring, after the demerger of DWH, SAMIL will be merged into MSSL to consolidate 100 per cent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in SAMIL under MSSL.
As per the company statement, "The group reorganisation plan realigns interests of all its stakeholders and creates a simplified corporate structure for the growth of businesses across product portfolios within the auto components space and allied operations. The proposed reorganisation aims to simplify group structure and enable MSSL shareholders to benefit through 100 per cent stake in SMRP BV; create a separate independent entity for DWH business with a focused approach on this business, and align the interest of all stakeholders by bringing all auto component and allied businesses in SAMIL under a listed entity."
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