Stoneridge, a leading Michigan-based designer and manufacturer of highly engineered electrical and electronic vehicle systems has announced that the company has entered into a Share Purchase Agreement to sell its minority interest in Minda Stoneridge Instruments (MSIL) – a joint venture with Indian supplier major, Spark Minda, who owned 51% stake in the venture.
The minority interest sale represents 49% of the total outstanding equity of MSIL to Minda Corporation.
The transaction is expected to be closed by December 30, 2021, subject to all statutory and customary closing conditions. In a release issued by Stoneridge, it stated that the purchase price of the MSIL equity shares is $ 21.5 mn-equivalent Indian rupee, which is payable in US dollars at closing.
Jon DeGaynor, President and Chief Executive Officer, Stoneridge said the transaction allows Stoneridge to continue its transformation by aligning its resources with its greatest areas of opportunity. “We value the partnership we have developed with Minda through MSIL and wish them continued success going forward,” he said.
MSIL is based in India and manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle, commercial vehicle and automotive markets.
The company recognised equity in earnings of MSIL of $ 1.3 mn for the nine months ended September 30, 2021, and $ 1.5 mn and $1.6 mn for the years ended December 31, 2020 and 2019, respectively, the company stated.