Financial Daily from THE HINDU group of publications
Saturday, Sep 14, 2002
Financial Daily from THE HINDU group of publications Saturday, Sep 14, 2002 |
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Mergers & Acquisitions Corporate - Mergers & Acquisitions Shriram group to sell Hi-Tech Arai stake — In talks with foreign allies M. Ramesh
CHENNAI, Sept. 13 THE Chennai-based Shriram group is in talks with Mitsubishi Corporation and Arai Seisakusho for selling its 45 per cent equity stake in Hi-Tech Arai Ltd. Both the Japanese companies are equity partners in the Rs 75-crore Hi-Tech Arai, with Mitsubishi holding 12 per cent and Arai, 33 per cent. Hi-Tech Arai manufactures a range of oil and valve stem seals and moulded rubber components for the automotive industry. It has manufacturing locations at Madurai and Tiruchi in Tamil Nadu. It is understood that Hi-Tech Arai, an unlisted company, made a profit of around Rs 6 crore last year. Confirming this to Business Line, Shriram group officials observed that the proposed stake sale was consequent to the group's decision to divest its stake in the non-core businesses. The group's strength was in truck financing, they said. Recently, the Shriram group sold 26 per cent of the equity in another of its companies - the Rs 13-crore Rambal Ltd - to Indimet Inc of the US, promoted by Mr Shreyas Mehta, a US-based NRI. It is understood that eventually, Mr Mehta would take over the rest of the Shriram's stake in the company. Last year, the group sold 21 per cent stake in the Rs 65-crore Medicorp Technologies, a Chennai-based pharma company, to Matrix Laboratories Ltd of Hyderabad. Matrix also bought another 30 per cent stake in Medicorp from ICICI Ventures and picked up a further 4 per cent through an open offer. (Medicorp Technologies Ltd has informed the Bombay Stock Exchange that a meeting of the board of directors of the company will be held on September 19 to consider a proposal for the merger of the company with Matrix Laboratories Ltd.) Now, the Shriram group is looking for "partners" for its unlisted pharma company, Medispan Ltd, but officials said they were in no hurry to divest in this company. The Rs 10-crore Medispan is a formulations company which has half-a-dozen international technical collaborations.
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