The Munjal family, promoters of the Hero Group, on Wednesday announced a family settlement agreement following which their 26 per cent stake in the two-wheeler maker Hero Honda will now be owned by Mr Suman Kant Munjal, the second son of group chairman, Mr Brij Mohan Lall Munjal.
In a filing to the BSE, Hero Honda said Mr Suman Kant Munjal will acquire 26 per cent stake in the company through two investment companies — Hero Investments Private Ltd and Bahadur Chand Investments Pvt Ltd through inter se transfer.
Hero Honda Motors is a joint venture between the Hero Group and Honda of Japan which holds 26 per cent.
As per the agreement, Mr Suman will acquire the stake held by his cousin Mr Vijay Kumar Munjal and uncle, Mr Satyanand Munjal, in HIPL and BCIPL.
“As part of an ongoing family settlement arrangement, within the Hero Group, the HIPL and Mr Suman Kant Munjal have informed the stock exchanges ...about the proposed transfer of shares amongst the promoters,” the Hero Group said in a statement.
The intended transfer of shares will in no way impact the working of any of the entities in the Hero Group, it added.
As per the BSE filing, HIPL will acquire 8.67 per cent stake (1.73 crore shares) held by Hero Cycles Ltd in Hero Honda through a share transfer among promoters (inter se) at a price of Rs 0.8 per share, aggregating Rs 1.38 crore. It will increase HIPL’s holding in Hero Honda to 17.33 per cent.
Subsequently, Mr Suman will acquire HIPL’s holding and that of BCIPL’s 8.67 per cent stake in Hero Honda through another inter se transfer taking his overall holding in the two-wheeler maker to 26 per cent.The date of proposed acquisition is on or before May 26.
“The proposed acquisition is an indirect acquisition of shareholding/voting rights in the target company by Mr Suman Kant Munjal,” the filing said. — PTI