Amtek Auto Subsidiary To Sell U.K. Assets To Liberty Group
Amtek had identified eight overseas subsidiaries for monetisation.
Amtek Global Technologies Pvt. Ltd, a subsidiary of Amtek Auto Ltd, agreed to sell its manufacturing plants in the U.K. to Britain-based Liberty House Group, Amtek Auto said in a filing to the stock exchanges on Friday.
The company did not any disclose details of the deal.
Amtek Auto is one of the dozen companies that the Reserve Bank of India has identified for insolvency proceedings in the National Company Law Tribunal. Together these account for about a quarter of bad loans in the Indian banking system.
The car-parts maker is the only large stressed account from the automobile and ancillary sector on the list. While its peers gained from a steady growth in India’s passenger vehicle sales to 3 million units over the last five years, Amtek’s fortunes tumbled. A string of overseas acquisitions left it under a pile of debt. To be precise, Rs 7,800 crore, at the end of March 2016, as per its annual report. It also owes Rs 2,100 crore to bondholders and overseas lenders, the report added.
The company is in process of monetising its overseas and domestic assets to strengthen the capital structure of its business, Amtek had said in the notes accompanying its financial results for the year ended March. The auto components maker classified eight overseas subsidiaries as assets held for sale, the notes added.
Shares of Amtek Auto had closed 0.8 percent higher, ahead of the announcement, while the country's benchmark BSE Sensex ended trade 0.4 percent up.