Samvardhana Motherson International Limited — Important, 06-12-2024: Disclosure of material issue

The Board of Directors of Samvardhana Motherson International Limited has approved a significant acquisition of Atsumitec Co., Ltd., a Japan-based manufacturer specializing in high precision machined components for automotive applications. The acquisition will be executed through a 100% subsidiary, ultimately leading to Motherson acquiring 95% ownership of Atsumitec, while Honda Motor will retain the remaining 5%. This strategic move enhances Motherson's positioning with Japanese OEMs, as it seeks to expand its presence in the automotive sector, particularly in chassis and transmission components for two-wheeler and four-wheeler markets.

The estimated purchase price is around JPY 8.5 billion (approximately USD 57 million), a cash transaction based on a locked box mechanism dated March 31, 2024. The deal is structured in multiple phases, with expected regulatory approvals by Q4 FY25. This acquisition is anticipated to bolster Motherson’s manufacturing capabilities and diversify its customer base, offering potential growth opportunities in emerging markets. Overall, this acquisition presents a positive outlook for Motherson’s expansion strategy in the global automotive industry.