JK Tyre increases stake in Cavendish Industries to 71.91%, Auto News, ET Auto

New Delhi: JK Tyre & Industries, one of India’s premier tyre makers, has more greater…

New Delhi: JK Tyre & Industries, one of India’s premier tyre makers, has more greater its stake in Cavendish Industries Ltd (CIL) from 69 per cent to 71.ninety one per cent on a standalone basis and from eighty five per cent to 86.forty one per cent with its subsidiary JK Tornel, Mexico. JK Tyre infused Rs seventy five crore to receive two.ninety one per cent in Cavendish Industries.

In a regulatory filing on March 26, JK Tyre mentioned the goal of the acquisition is “to mobilise extended phrase finance for miscellaneous company needs and also for conference demands of funds for growth of producing capacities at firm’s tyre plant at Laksar close to Haridwar.”

JK Tyre's subsidiary JK Tornel SA De CV, Mexico also holds 16 percent of the equity in CIL.
JK Tyre’s subsidiary JK Tornel SA De CV, Mexico also retains sixteen per cent of the fairness in CIL.

JK Tyre already retains 69 per cent of the fairness shares of CIL. Its subsidiary JK Tornel SA De CV, Mexico also retains sixteen per cent of the fairness. Hence, merged holding of JK Tyre alongside with its subsidiary is eighty five per cent. “With this transaction, the shareholding will go up from eighty five per cent to 86.forty one per cent,” JK Tyre mentioned.

“The preferential problem is staying designed by CIL to JK Tyre, This is a linked bash transaction and the same is done at ‘arms length’.” the statement

JK Tyre had acquired Cavendish Industries for Rs two,195 crore in the fiscal calendar year 2016. This assisted the firm to expand its ability to one.two million models of truck radials, .sixty three million models of two-wheeler and 3-wheeler tyres and ability for bias tyres.

Getting the full ability to 34.7 million tyres a calendar year throughout twelve producing plants located in India and Mexico.

In conditions of financials, JK Tyre described a sharp drop of fifty two.9 per cent in its consolidated gain just after tax (PAT) at Rs eleven.65 crore for the third quarter ended December 31, 2019. In comparison, the firm had posted a consolidated PAT of Rs 24.74 crore for the Oct – December quarter a calendar year in the past.