Minda Corp to acquire Panalfa Autoelektrik

New Delhi: Auto component manufacturer Minda Corporation today said it will fully acquire Panalfa Autoelektrik Ltd from its existing Indian promoters entailing a total outgo of over Rs 45 crore.

Minda Corporation has signed a definitive agreement for acquiring 100 per cent equity of Panalfa Autoelektrik Ltd from its existing Indian promoters, the company said in a BSE filing.

Panalfa Autoelektrik Ltd (PAEL) is into manufacturing of starter motors and alternators having different applications for automotive and component industries.

"This acquisition is a part of a long-term strategy of the company for the growth in similar line of business," it said, adding the transaction is likely to be completed in the next five days.

Elaborating on the financial details of the transaction, the company said Rs 27.82 crore will be for the 100 per cent equity, while it will take over a loan of Rs 6.72 crore.

Besides, Minda Corporation will also infuse Rs 11 crore additional fund in the acquired entity.

PAEL has a manufacturing facility at Bawal in Haryana. The firm had posted a turnover of Rs 71 crore in 2014-15. It's main customers include International Tractors, Escorts, New Holland Tractors, Tafe and Eicher, Minda added.