Honda Motor Company, Japan and the Hero Group, India will soon part ways after their 25 years of partnership.The still-united partners have been conferring a change in the ownership of the company that would see the Hero group acquiring a majority over the company. The Hero Group’s offer to buy out Honda might fall flat on its face seeing that there is speculation of Honda making a counter-offer as the Japanese company is unhappy with the discounted current offer.
If sources are to be believed, the introduction of new terms could only prove a boon for both companies. Allegedly, according to the agreement, if either of the two parties wants to exit, the other party may buy these shares at a 30-40% discounted rate. But if the offer is not acceptable, the seller can turn buyer and offer to purchase the shares of the other party at a premium.
Currently, 26% of Hero Honda is worth INR 10,000 crore. Both Honda and the Munjals enjoy right of first refusal over each other’s shares. Responding to Hero’s offer, Honda has made a counter-offer that is being deliberated by the Munjal family and no decision has been concluded yet.
Watch this space for more updates on the Hero-Honda crisis!
Articles You Might Like:
Royal Enfield Stops Fresh Book...TVS Intending To Sell 2.4 lakh...Karnataka Government Allocates...Mahindra Mojo 300cc Features, ...Mahindra Stallio 110cc Bike Fe...Yamaha FZ1 Launching In Decemb...
Other Interesting Articles:
Honda Motors Probably to Exit Hero HondaHero Honda To Launch 14 Products During Next 18 MonthsHero Honda Will Be Under Pressure SoonHero Honda Aims To Launch More Models On The Top-End SegmentHero Honda Launched Karizma Fi Today In Gurgaon? Tags: hero honda, Hero Honda Partnership, Hero Honda Split LatestCommentsPopularTags
View the
Original article
