Kinetic Motors sells 11.1% to Taiwan firm

Two wheeler manufacturer Kinetic Motors on Tuesday sold a 11.1 per cent stake to Taiwan-based Sanyang Industry Company Ltd for Rs 13.63 crore (Rs 136.3 billion).

The company has also entered into a technical collaboration with SYM for technology and manufacturing of their models in India.

The board of directors of Kinetic Motor Company has recommended a preferential allotment of 20.65 lakh equity shares priced at Rs 66 each worth Rs 13.63 crore to SYM as per Securities and Exchange Board of India guidelines, the company said in a release in Mumbai.

The allotment would amount to SYM holding a 11.1 per cent stake of the enhanced capital of Kinetic Motor Company Ltd, it said adding that the management control would be retained with the Kinetic Group as SYM is taking a minority stake.

HSBC and Amarchand Mangaldas were the advisors to the Kinetic Group, while KPMG Corporate Finance and AZB partners were the advisors to SYM, it added.

SYM has a formidable research and development set up to produce world-class two-wheelers and has developed models from 50 to 500 cc, including electric scooters and fuel injection technology vehicles, it said.

SYM's headquarters is established in Hsin Chu Industrial Park in Taiwan and its three major production bases are in Taiwan, China and Vietnam and the annual sales revenue of the company exceeds $1 billion.