Motherson Sumi launches $600 mn open offer for Finnish PKC Group

Mumbai, Jan 20 (IANS) Specialised automotive component manufacturer Motherson Sumi Systems (MSSL) has launched a bid to acquire Finland-based wiring harness major PKC Group through an open offer worth Euro 571 million (more than $600 million or more than Rs 4,100 crore).

According to the announcement made late on Thursday night, MSSL's Board of Directors approved a proposal to launch a voluntary, recommended public tender offer for the acquisition of the outstanding share capital and voting rights of PKC Group Plc (PKC), Finland.

The company informed that it has entered into a combination agreement for the proposed transaction with PKC.

"MSSL will make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC," the company had informed the stock exchanges through a regulatory filing made late on Thursday night.

The shares of PKC are listed on the Nasdaq and Helsinki stock exchange.

"PKC shareholders are being offered a cash consideration of EUR 23.55 for each share/options in PKC representing an aggregate equity purchase price of approximately EUR 571 million in an open tender offer," the regulatory filing said.

"The transaction is expected to be completed by end of March 2017."

MSSL which is one of the largest auto ancillary in India was established in 1986 through a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).

Currently, the company has a presence in 26 countries across six continents. It reported a turnover of $5.7 billion for FY16.