B. M. Munjal and his sons will hold the stake as Indian promoters in the country’s largest two-wheeler maker Hero Honda as part of the family settlement of $4.2-billion Hero Group.
The agreement to divide the group was reached last week and was based on a simple principle of ending the numerous cross holdings between the families of B.M. Munjal and his three brothers — Mr O.P. Mun-jal, Mr Satyanand Munjal and late Dayanand Munjal.
Reliable sources said it is only a mere ending of cross holdings in the companies in order to keep the businesses running smooth when it will be handled by future generation.
“It seems like an intelligent move as all the family members would get significant businesses to run,” a source in the know of the development said.
As a result, the financial companies on behalf of Mr B.M. Munjal family will hold 26 per cent stake in Hero Honda.
After the settlement, Hero Honda, Hero Corporate Services, Rockman Cycles Industries, Hero Mindmine Institute, Easy Bill and Hero Management Service will go the B.M. Munjal family. Mr Satyanand Munjal’s family will get Munjal Showa, Munjal Auto, Highway Industries, Majestic Auto and Satyam Autotech. Hero Cycles, Hero Motors and Munjal Sales Corp will go to Mr O.P. Munjal, the members of late Dayanand Munjal, represented by his son Mr Vijay Munjal will get Hero Exports, Hero Electric, Hero Cycles (Unit II) and Sunbeam Auto. — PTI