A wholly-owned subsidiary of precision engineering firm Dynamatic Technologies Ltd has sold its foundry assets to an Indian unit of United States-based MAT Holdings Inc.
The board of directors of JKM Ferrotech Ltd has approved the sale of these assets to Danblock Brakes India Pvt Ltd, an auto components and consumer products manufacturer, Dynamatic said in a stock-exchange filing on Monday.
The sale will take place for a cash consideration of Rs 70-75 crore (around $9.57-10.25 million). The transaction is expected to close by the end of March, subject to customary closing conditions and approvals.
Global investment banking firm Singhi Advisors acted as the sole adviser on the transaction.
The foundry assets recorded a turnover of over Rs 108 crore during the 2019-20 financial year, per the filing. Dynamatic Technologies Ltd itself reported consolidated net sales of Rs 1,321 crore for that fiscal year, with net profits of Rs 55 crore for the same period.
Shares of the company ended trading on Monday 0.25% up at Rs 777.6 apiece. According to its website, Dynamatic designs and manufactures precision engineered products for sectors including automotive, aeronautics, hydraulics, and security.
It operates factories in several locations in India, as well as in a few locations in the United Kingdom and Germany. The manufacturing company is also part of India’s defence push, and will manufacture the front fuselage for light-combat Tejas Aircraft.
Investors in the company include investment group Samena Capital, which manages around $800 million in assets across strategies including private equity, direct investments, and credit. Per stock-exchange data, the firm holds an 8.76% stake in Dynamatic Technologies.
