The leading Indian two-wheeler maker Hero Group said on Tuesday that it has arranged the finance required for acquiring 26 percent stake of Japanese Honda Motors in their joint venture Hero Honda Motors Limited. The company stated in a regulatory filing that its investment arm – Hero Investments Private Limited (HIPL) – will be acquiring Honda’s stake in HHML for Rs.739.97 per share. Hero Group has signed an agreement with private equity firm Lathe Investment Private Limited and BC India Private Investors II for raising the funds for this acquisition.
The company said in a statement on Tuesday, "Hero Group has also signed definitive agreements with PE firms BC India Private Investors II, an affiliate of Bain Capital LLC, and Lathe Investment Private Limited, and a wholly owned subsidiary of the government of Singapore Investment Corporation (Ventures)."
Both firms announced in December 2010 that they are restructuring their respective equity shares in Hero Honda Motors Limited (HHML). It is to be mentioned here that HHML was established in year 1984 when both of the promoters of this company - Hero group and Honda Motor Co – entered into a joint venture.
Hero Honda is currently the largest two-wheeler maker in the world and sells some of the most popular bikes in the world including Splendor, Passion, Karizma ZMR, Hunk, CBZ Xtreme mobikes and scooter Pleasure.
