Amtek to Raise Over $1 Billion from Overseas Expansion
A major name in Indian auto component makers, Amtek Auto Ltd has announced it’s expansion into overseas businesses. Amtek is the supplier to Ford Motor Co. and Aston Martin Holdings UK Ltd expects to raise over $1 billion from the process.
The company has talked to potential bidders from China, as well as private equity investors, the people said. Amtek is pushing for additional asset sales as it contends with rising leverage and a net loss of Rs.987 crore ($147 million) reported for the fiscal year ending September.
Amtek recently appointed Rothschild & Co. to advise on the potential sale of all overseas operations including those in the UK, US, Mexico, China as well as Germany, the people said, asking not to be identified as the information is private. The New Delhi-based company has been seeking bidders for its German unit Amtek Tekfor Holding GmbH since last year.
Amtek at Stock Market
Amtek’s shares rose as much as 8.7%, and were changing hands at Rs.48.20 at 2:23 pm in Mumbai. Metalyst Forgings Ltd, which is 49% owned by Amtek Auto, surged by the daily 20% limit to its highest price since December 2015. The stock soared 39% last week, the biggest weekly advance in more than a decade.