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Home  » Business » Maruti to buy Suzuki shares for Rs 12 crore

Maruti to buy Suzuki shares for Rs 12 crore

Source: PTI
May 18, 2006 16:09 IST
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The Maruti Udyog board has approved the purchase of Suzuki Motor Corporation's shares in their joint venture Maruti Suzuki Automobile India Ltd for Rs 12 crore (Rs 120 million) and merge the arm with itself, the Lok Sabha was told on Thursday.

The MUL board had approved constitution of a panel of five directors for valuation of MSAIL shares.

The five-member panel has recommended purchase of 1,200,000 shares of MSAIL from SMC at the rate of Rs 100 per share (at par) aggregating Rs 12 crore.

This has been approved by the MUL board in their meeting on April 26, minister of state for heavy industries and public enterprises Kanti Singh told the Lower House of the Parliament in a written reply.

Earlier, the MUL board had decided to merger MSAIL with MUL, she said. MSAIL was set up as a subsidiary to operate Maruti's new car plant in Manesar.

To a query, Singh said the government had not taken any decision on the proposed revival package of HMT Ltd (Machine Tools) and a memorandum of understanding will be signed with the company after revival package to monitor the desired level of performance.

HMT Machine Tools is the largest machine tools manufacturing company in the country accounting 20 per cent of the production.

On the ailing Burn Standard Company Ltd, which has been referred to the Board for Industrial and Financial Reconstrution, Singh said on May 10, Industrial Investment Bank of India, the designated operating agency, met the concerned stakeholders to finalise the draft revival package.

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