ZF Sells 4.3% Stake In Indian Subsidiary To Boost Financial Flexibility

Mobility Outlook Bureau
27 Nov 2024
04:37 PM
1 Min Read

The move is aimed at enhancing liquidity and financial flexibility to support ZF’s growth plans globally and in India.


ZF

ZF Group, the world’s third-largest automotive supplier, has sold 820,000 shares, representing a 4.3% stake, in its listed Indian subsidiary ZF CVCS India.

Despite the sale, the company has reaffirmed its commitment to maintaining a solid majority shareholding in ZF CVCS India, emphasising that the transaction does not impact its control over the subsidiary. ZF CVCS India, a market leader in the country’s commercial vehicle supplier industry, remains a critical component of its global growth strategy.

The decision comes amid a favourable market environment in India, where ZF CVCS India has delivered strong operational and financial performance. The funds raised through the stake sale will be reinvested to drive further growth and support the company’s initiatives in the rapidly evolving Indian automotive market.

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