Honda puts the brakes on Hero joint venture

first_img KCS-content HONDA Motor Co. has reached a basic agreement to dissolve its partnership in India’s Hero Honda Motors Ltd.Meanwhile US private equity groups are set to buy a stake in Hero, with buy-out groups Carlyle and TPG helping the Munjal family, which controls the Indian company, to buy back Honda’s 26 per cent stake.The cost is reportedly set at $1.4bn (£888m) – a discounted value as Hero Honda has a market capitalisation of around $7.6bn. Once on its own, Honda will focus its resources on wholly owned subsidiary Honda Motorcycle & Scooter India Pvt, a Nikkei report said.Honda and its Indian partner Hero Group will seek approval for the breakup from their respective boards of directors later this month.The Japanese automaker could reap up to around 100bn yen (£767bn) from the sale of its shares in Hero Honda Motors, founded in 1984 with India’s Hero Group, Nikkei said.The partners each took 26 per cent stakes in the venture, which became an emerging market foothold for Honda.Honda will sell its entire stake in the motorcycle maker by as early as March, the report added. Show Comments ▼ Share whatsapp whatsapp Sunday 5 December 2010 10:38 pm Honda puts the brakes on Hero joint venture More From Our Partners Biden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comWhy people are finding dryer sheets in their mailboxesnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comPuffer fish snaps a selfie with lucky divernypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com Tags: NULLlast_img