Tata AutoComp Systems (TACO) on Friday said that it will acquire another 37.5% stake in Automotive Stampings and Assemblies Ltd (ASAL), a part of the Spanish company Gestamp Servicios, for around Rs 34 crore.
The Tata Group-promoted auto-component firm has already inked a share purchase agreement with Gestamp to acquire around 38,24,453 shares at a price of Rs 89.50 per share, the company said in a statement in Mumbai.
Once the deal is finalised, TACO will own 75% stake in the BSE-listed ASAL, which is into manufacturing and marketing automotive components and aggregates made from sheet metal. The balance would be held by public.
"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 auto industry," TACO executive director and CEO R S Thakur said.
Post this buy-out, Gestamp shall cease to be the promoter of ASAL, which will now become a subsidiary of TACO.
The acquisition is part of its consolidation strategy whereby Tata AutoComp will focus on select product lines and grow the businesses it has in future, he added.
TACO has been rationalising its portfolio and has divested its stake in seven of its business units. With this acquisition, Tata AutoComp will have five subsidiaries and six joint ventures with leading auto-component majors.