Mumbai, January 10, 2006 : The Board of Directors of Kinetic Motor Company Limited , the leading manufacturer of two wheelers in India , in a board meeting has recommended a preferential allotment of equity shares to Taiwan based Sanyang Industry Co. Ltd. (SYM). The company will issue 20,65,000 shares priced at Rs. 66 each worth Rs. 13.63 crore as per the SEBI guidelines. This will amount to SYM holding a 11.1% (approx.) stake of the enhanced capital of Kinetic Motor Company Limited. With SYM taking a minority stake, the management control will be retained with the Kinetic Group.
SYM was founded in Taipei in 1954. The company's headquarters is established in Hsin Chu Industrial Park in Taiwan & SYM's 3 major production bases are in Taiwan , China and Vietnam . The company's high quality products are sold under its own brand name ‘SYM'. The annual sales revenue of the company exceeds 1 billion US dollars. The company produces more than 600 thousand units of motorcycles and 20 thousand automobiles per annum.
Kinetic has also entered into a technical collaboration with SYM, for technology and manufacturing of their models in India . SYM has a formidable Research & Development, to produce world-class two-wheelers and has developed models from 50 to 500 cc, including electric scooters and Fuel Injection Technology vehicles.
Commenting on the development, Ms. Sulajja Firodia Motwani – Director of Kinetic Motor Company Limited said, “This equity participation by SYM will enable us to expand our business in India as well as other countries. We welcome this investment and view it as a reinforcement of the strengths we have built over a period of time at Kinetic Group. This investment by SYM is in line with our commitment to deliver long-term shareholder value. Kinetic has introduced superior global technology to the Indian market over the last two decades through its global tie-ups and has always been appreciated by the people in India . We look forward to bringing out the best products with new generation engine technology for the Indian masses through this technical collaboration with SYM.”
HSBC and Amarchand Mangaldas were the advisors to the Kinetic Group, while KPMG Corporate Finance & AZB partners were the advisors to SYM.
About Kinetic Group
Since 1974, Kinetic group is a leading manufacturer of two wheelers in India and is known for its spirit of innovation and customer friendliness. Kinetic has brought to India the gearless scooter revolution, known for having enriched lives of over 6 million people. Some of the company's popular brand names are Nova 135, Zing, Kine, Kinetic 4s, Luna, etc. Kinetic is currently preparing to launch exciting Italian scooters, which will revolutionize the Indian two-wheeler market.
About SYM
Sanyang Industry Co. Ltd. (SYM) headquartered in Hsin Chu Industrial Park in Taiwan , is a Billion dollar automobile giant. It has more than 2000 employees engaged in the manufacturing of motorcycles, scooters and ATV's. SYM also has a co-operation with Hyundai Korea in manufacturing of Cars in Taiwan . The company produces more than 600 thousand units of motorcycles and 20 thousand automobiles per annum. SYM's 3 major production bases are in Taiwan , China and Vietnam . Sanyang's high quality products are sold under its own brand name ‘SYM'. The annual sales revenue of the company exceeds 1 billion US dollars. SYM has tie-ups with leading international companies like International Truck, Bombardier Recreational Products and Hyundai.
For further information, please feel free to call or email
Glen /Sunita
Cell: 98214 14845 / 98219 92518
Email: glen@hanmerpr.com / sunita@hanmerpr.com |
