In an otherwise sluggish and pandemic affected auto sector, corporate actions have started picking up. Auto component manufacturer from Solapur, Precision Camshafts Limited (BSE SCRIP CODE: 539636) announced the completion of the stake purchase in its foreign subsidiary companies, according to the stock exchange filings.
These acquisitions would help the company to recover from the ravages of COVID-19. Growth in european markets with the help of these subsidiaries will help the company to offset pandemic-related disruption in domestic markets.
Earlier on 24th July, it has announced the acquisition of balance 24% shareholding in ‘MFT Motoren und Fahrzeugtechnik GmbH, Germany.’ With the completion of the remaining stake purchase, MFT and EMOSS would be 100% step down subsidiary companies of Precision Camshafts.
Precision Camshts Limited (NSE Script Code: PRECAM) A leader in camshaft manufacturing, the company, headquartered in Solapur and Corporate office in Pune, had acquired 76% shares in MFT Motoren and Fahrzeugtechnik GmbH in Cunewalde, Germany, in March, 2018 and 51% stake in the Dutch electric mobility firm, EMOSS Mobile Systems BV, in May, 2018, via its wholly owned subsidiary PCL (International) Holding BV in Netherlands.
EMOSS is a one-of-a-kind business that designs, develops, produces and supplies
complete electric power trains for trucks, buses, military vehicles and heavy equipment. The EMOSS business model includes conversion of diesel trucks into ready to use electric trucks within a short span of 90 days. Precision Camshafts Limited purchased the balance stake in EMOSS for Rs. 5.19 crores. This acquisition firms the stand of PRECAM into the electric motor vehicles.
24% Stake in MFT was acquired for a cash consideration of Rs.4.76 crores. Acquiring balance 24% shareholding of MFT will allow the Company to expand its manufacturing base in the European Market and have full control over the affairs of the MFT in the future.