Hero MotoCorp announced that it will purchase of additional shares of Ather Energy Pvt. Ltd., an associate company, from an existing shareholder.
Ather, an existing Associate company of Hero MotoCorp Limited (HMCL), is engaged in the business of designing, manufacturing, selling, servicing electric two-wheelers. The additional stake will be purchased by Hero MotoCorp for ₹140 crore and after the deal its stake in Ather will rise to 39.7% from the current 36.6%.
“Currently, HMCL’s shareholding in Ather is 36.7% (on a fully diluted basis) of the paidup share capital of Ather. Post the purchase of additional shares, HMCL’s shareholding in Ather would increase to 39.7% (on a fully diluted basis) of the paid-up share capital of Ather,” it said in a regulatory filing.
Besides, Ather also has its own charging infrastructure and is engaged in storage, distribution and management of electric power (including energy in the form of batteries) and other ancillary services.
The transaction entails the purchase of additional shares of an Associate Company, a related party. No promoter/ promoter group/ group companies have any interest in the entity in which the additional investment is being made.
The transaction is proposed to be made on an arm’s length basis.