Munjals Gearing Up to Buy Honda stake in JV

Hero Group’s Munjals have reportedly initiated talks with lenders to secure bridge financing for buyout of its Japanese joint venture partner’s equity in Hero Honda. Lenders including Bank of America, HDFC and L&T Finance are in the line up to finance the Munjals in what could be one of the most successful JV’s India has ever seen.The two-wheeler giant, Hero Honda, began operations in 1984. Both the Hero Group and Honda own 26% stake each, the remaining shares are floated. In 2004, the Hero Group and Honda extended their agreement for 10 years, where the Japanese partner would continue to provide technology. 2014 would have seen another renewal.While everyone remains tight-lipped about the roping in of lending biggies, the companies involved refuse to divulge into details. HDFC spokesperson states,

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