Amtek Auto is anticipated to shortlist bidders for its German division Tekforin the week to come, a year after starting what has been a lengthy sale process. Loss-making Amtek, which has changed advisors and at present is working with Rothschild on the sale, has been given eight first-round bids, valuing Tekfor at up to 520 million euros ($573 million).
7of the bids are from car parts makers, which includes a state-owned Chinese firm, whereas one offer was made by a private equity group. Hopefully Spain's CIE - part-owned by Mahindra Group - and Canada's Linamar have strong chances of being shortlisted. It is not clear whether Japan's Musashi Seimitsu, which earlier this year bought rival Hay Group, has also made an offer.
CIE is in a preliminary phase of analysis on the conditions for the purchase of certain assets of Amtek Auto, such as Tekfor. Amtek, Rothschild and the other bidders refused to comment or were not immediately available for comment.
Tekfor is hoped to produce earnings before interest, taxes, depreciation and amortization of around 80 million euros this year.
Amtek is on a drive to reduce debt and launched the sale of the maker of driveline components previously known as Neumayer Tekfor, just two years after buying it out of insolvency.
Neumayer Tekfor was incorporated in 1942 and was involved in various mergers before being bought up by Barclays Private Equity, now Equistone, in 2005. It had two joint ventures with Amtek before going into administration in 2012. On 2nd Nov, Amtek Auto share price opened at Rs. 44.20 against its previous closing at Rs. 44.00. The stock is trading at Rs. 43.60, down by 0.91 per cent.
Amtek Auto is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels. For further details on the stock, refer to Amtek Auto share price forecast.
Source: www.dynamiclevels.com
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