Hero allowed $1 billion foreign investment
March 29th, 2011 - 7:14 pm ICT by IANSNew Delhi, March 29 (IANS) The government Tuesday allowed infusion of Rs.4,500 crore (about $1 billion) in Hero Investments, part of the Hero group, to acquire Japanese partner Honda’s stake in the two-wheeler joint venture firm Hero Honda Motors Limited.
“The Cabinet Committee on Economic Affairs today (Tuesday) approved the proposal of Hero Investments Private Limited to receive FDI (foreign direct investment) amounting to Rs.4500 crore approximately in the investing company from Bain Capital and Lathe Investment Private Limited,” according to an official statement released here.
Both Bain and Lathe are private equity firms.
Hero, in early March, said it has arranged the required finance to acquire the 26 percent holding of Honda Motor in their joint-venture company Hero Honda Motors Limited (HHML) and pegged the Japanese auto major’s stake around Rs.3,842 crore.
At the Bombay Stock Exchange, the Hero Honda stock closed the day with a 3.02 percent gain at Rs.1,546.35 a share.
The two companies had ended their 26-year old association to pursue their own goals in the huge Indian two-wheeler market.
Honda already has a major presence in the Indian market through its wholly owned subsidiary Honda Motorcycle and Scooter India Private Limited.
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- Hero Honda hires global brand specialist Wolff Olins - Mar 10, 2011
- Honda to make 100cc bike in India - Mar 21, 2011
- Hero Honda to set up facility in Himachal - Oct 21, 2010
- Hero Honda quarterly net profit plunges 16.2 percent - May 04, 2011
- Karnataka gives tax sops to Honda bike plant - Feb 17, 2012
- GVK to buy Siemens' Bangalore airport stake - Aug 22, 2011
- Karnataka SMEs to get 30 percent of industrial land - Jun 22, 2011
- Good take-off for two-wheelers in 2011, companies mark sales growth (Lead) - Feb 01, 2011
- Hero Honda keen to set up facility in Himachal - Aug 19, 2010
- Hero Honda's third quarter net profit down 20 percent - Feb 02, 2011
- Hero Honda net profit jumps 13.4 percent - Jul 21, 2011
- Hero Honda's February sales up 23 percent - Mar 01, 2011
- Kinetic Engineering and Kinetic Motor to merge - Dec 09, 2011
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