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regular-article-logo Tuesday, 21 May 2024

98 per cent of Maruti Suzuki India’s shareholders vote in favour of resolution to issue equity shares to Suzuki Motor Company

Shares will be issued on preferential basis for consideration payable by Maruti for acquisition of 100 per cent equity stake in Suzuki Motor Gujarat Pvt Ltd

Our Special Correspondent Calcutta Published 19.11.23, 05:57 AM
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Representational image File picture

Around 98 per cent of Maruti Suzuki India’s shareholders have voted in favour of a resolution to issue equity shares to Suzuki Motor Company.

The shares will be issued on a preferential basis for the consideration payable by Maruti for the acquisition of a 100 per cent equity stake in Suzuki Motor Gujarat Pvt Ltd.

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“This is to inform that the ordinary and special resolutions as set out in the postal ballot notice dated October 17 pertaining to i) approval of related party transaction and ii) create, offer, issue and allot equity shares on preferential basis on consideration other than cash have been approved by the members of the company with requisite majority,” the auto maker said in the regulatory filing.

Earlier on July 31, Maruti Suzuki India’s board had approved the termination of the contract manufacturing agreement with Suzuki Motor Gujarat Private Ltd and exercised the option to acquire the shares of SMG from Suzuki Motor Corporation.

The acquisition of SMG from Suzuki Motor Corporation will happen before March 31, 2024, the firm had said.

In terms of actual production, logistics, sales, and the cost thereof, there will be no change as the cars earlier supplied by SMG as a contract manufacturer will be supplied as before, Maruti had said.

Earlier in August, Maruti Suzuki chairman R.C. Bhargava had said that Suzuki’s stake in India’s largest passenger car manufacturer will increase by about 1.8 per cent after the sale of the Gujarat plant.

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