Tata AutoComp Systems Limited has announced that it has agreed to purchase a 37.5% stake in Automotive Stampings and Assemblies Limited (ASAL), a listed company, from Gestamp. The move takes Tata AutoComp’s stake in ASAL up to 75%.
Tata AutoComp said it paid Rs. 89.50 per share. Tata AutoComp will own a 75% stake in ASAL with the balance held publicly.
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Mr R S Thakur, ED & CEO, Tata AutoComp said: “We have identified stampings as a core business area and the move is in sync with our overall growth strategy and we expect a significant growth in this business. ASAL has grown to a stage where it can offer a wide range of products and services to meet the evolving demand from the Indian automobile industry.”
Tata AutoComp says it has been rationalising its portfolio over the past two years, including a number of divestments. The acquisition is a part of its consolidation strategy with a focus on ‘select product lines’ to grow its business.
ASAL is the only listed company in the Tata AutoComp portfolio. With the ASAL acquisition, Tata AutoComp will have five subsidiaries and six joint ventures.
ASAL customers include General Motors, John Deere, Piaggio, Mahindra and Mahindra, Tata Motors and Volvo. ASAL has manufacturing facilities located in Pune, Halol and Pantanagar.
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