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Friday, August 17, 2001

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Hampyorex to buy out Itochu Indian partners

Ambarish Mukherjee

NEW DELHI, Aug. 16

JAPANESE multinational Itochu Corporation has applied to the Foreign Investment Promotion Board (FIPB) for increasing the foreign equity stake in its Indian arm from the current 74 per cent to 100 per cent.

According to the company's proposal, Japanese logistics major, Hampyorex Company Ltd, will be buying out the 26 per cent stake in the company held by the Dubash group, the Indian partners.

Itochu Corporation India has an equity capital of Rs 12 crore of which 74 per cent amounting to Rs 8.88 crore is held by the Japanese parent.

The Dubash group holds 1,82,0000 equity shares of Rs 10 each amounting to Rs 3.12 crore which is 26 per cent of the equity capital.

Out of the total Dubash group holding, Darab Dubash (P) Ltd and Behram Dubash (P) Ltd hold 9,09,999 shares each. Individually, Mr Arvind Dubash and Mr Behram Dubash hold one share each.

Itochu has informed the FIPB that the Indian partners are ready to sell their holding and they have given this to Itochu in writing.

``Itochu Corporation has finally made ready Hamkyorex Company Ltd, a well-known name in logistics field to buy entire equity holding from the Dubash group,'' the company has said.

Itochu has also sought permission for payment of eight per cent royalty to the Japanese parent on export billing and five per cent on domestic sales.

It has also sought approval for remittance of $300,00 as lumpsum towards technical knowhow fee to US-based Expeditors International.

Itochu Corporation India is engaged in handling inland transportation of completely-built units of Honda Siel Cars. It also provides dedicated logistics services to other Indian automobile manufacturers.

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