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| Bse Corporate Announcements | Back |
| Hero Investment to merge with Hero Motocorp | |
| Hero Investment to merge with Hero Motocorp The Board of Directors of Hero MotoCorp has approved a proposal to merge Hero Investments (HIPL) into Hero MotoCorp (HMCL). The merger is, however, subject to the approval of the Delhi High Court, the shareholders and creditors of the respective companies, and other statutory authorities as applicable. The shareholders of HIPL include the partnership firm Brijmohal Lall Om Prakash (BMOP) which holds 71.63% and private equity (PE) investors BC India Private Investors (19.81%) and Lathe Investment. BC India Private Investors is an affiliate of Bain Capital LLC, while Lathe Investment is a wholly-owned subsidiary of Government of Singapore Investment Corporation (GIC). The promoter family owns 52.21% in HMCL through HIPL which holds 43.33% shares, Bahadur Chand Investment (BCIPL) which holds 8.67% shares, and 0.21% shares through other entities including individuals. The merger of HIPL into HMCL is going to benefit the public shareholders of Hero MotoCorp, as this will result in an increase in the public float of HMCL by approximately 12.29% (being the shareholding of the investors in HMCL, which will now form part of public shareholding and not that of the promoter group). This will in turn increase the trading stock of the shares of HMCL. Increase in the public stock as well as trading stock will positively impact the liquidity of the shares of Hero MotoCorp. The merger, in no way whatsoever, will have any impact on Hero MotoCorp, its shareholders and creditors. There will not be any change in the financial position of HMCL, nor will there be any change in the paid-up capital of the company. HMCL will issue and allot new shares to the shareholders of HIPL against cancellation of an equivalent number of existing equity shares held by them. Hence, there will be no change in the rights of the other shareholders including public shareholders. |
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