SONA KOYO STEERING SYSTEMS LIMITED (SKSS) is a manufacturer of steering systems in the passenger car and utility vehicle market in India, catering to passenger cars, utility vehicles and light commercial vehicles. SKSS has operations across India through its 7 plants (2 plants in Gurgaon, 3 plants in Dharuhera, 1 plant in Chennai and 1 in Sanand). The customers of the SKSSL include Maruti Suzuki and several global automakers, including Toyota, Tata Motors, Mahindra & Mahindra, Honda, Renault Nissan and Ford. The Equity Shares of the SKSS are listed on the BSE and NSE. Currently, the company is also engaged in business of column type electric power steering through joint venture with JTEKT and business of JKT for column type EPS, Manual Steering through joint Venture with Fuji Kiko.

JTEKT Corporation (JTEKT) is a limited liability listed company under the laws of Japan. The company focuses on four major product technologies: bearings, steering systems, driveline components and machine tools. JTEKT Corporation is holding company of SKSS. JTEKT has a joint venture, JSAI (JTEKT Sona Automotive India Limited) with the SKSS wherein the JTEKT holds 51% stake with a business objective of manufacturing column type electric power steering (C-EPS) systems.  JTEKT has several technology license/sharing arrangements with SKSS in the past and the JTEKT continues to have technology license/sharing arrangements with SKSS.

EARLIER TRANSACTION

Japan’s JTEKT corporation acquired 25.12% per cent stake by execution of Share Purchase Agreement dated February 1, 2017 after this through open offer acquired additional 25.23% stake. Post-acquisition from Sona Autocomp Holdings Limited and open offer the JTEKT holding in SKSS becomes 70.45%., the promoters holding is 77.44% including Maruti Suzuki’s stake of 6.99%.

With the Acquisition JTEKT has taken full control from Sona Group (Indian partner).  The company is in process of name change from Sona Koyo Steering Systems Limited to JTEKT India Limited and there is also some restriction on Brand usage and non-compete agreement with SONA Group. Sona Group will now focus on forging business for its growth

JTEKT-Sona-Koyo-Auto-Merger-Consolidation-1

Please note: JTEKT Technology agreement will continue with SKSS

TRANSACTION

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