ZF, the world’s third-largest automotive supplier, has sold 1,425,000 shares, representing a 7.5% stake, in its listed Indian subsidiary, ZF CVCS India. This strategic move aims to increase liquidity and financial flexibility to support ZF’s growth plans.
Despite the sale, ZF’s control over ZF CVCS India remains unchanged. It is part of ZF’s long-term strategy to maintain a solid majority shareholding in the entity. ZF CVCS India, a market leader in the Indian commercial vehicle (CV) supplier industry, continues to be a crucial component of ZF’s global growth strategy.
Benefiting from a supportive market environment in India, ZF CVCS India has demonstrated strong operational and financial performance. This transaction will bolster ZF’s financial flexibility, enabling further investments in its growth, particularly in the rapidly developing Indian market.
'Maintaining a solid majority shareholding in ZF CVCS India is a key part of our strategy, and this transaction allows us to enhance our financial flexibility without impacting our control,' said a ZF spokesperson. 'India remains a vital pillar in our global growth strategy, and we are committed to investing in this dynamic market.'
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