Wednesday, December 15, 2010

Honda Ready To Sell Their JV Stake in Hero Honda

. Wednesday, December 15, 2010

By stockOzone team

Honda Motor Corp. on Thursday officially announced its exit from Hero Honda Motors, its joint venture (JV) with the Munjals-promoted Hero group.

The announcement came a day after reports suggested that the Hero Corporate Services Board had approved the termination of the JV with Honda.

Japan`s Honda Motor has formely decided to sell its stake in the joint venture Hero Honda Motors. It owns 26% stake in Hero Honda, India`s largest motorcycle manufacturer.

According to sources, the Board of Hero Honda is likely to meet soon to clear Honda`s disengagement.

Moreover, the Japanese auto giant said that Honda Motorcyle and Scooter India (HMSI) will pump in Rs 5 billion (USD 110 million) to build a new plant in Rajasthan. HMSI is a wholly-owned subsidiary of Japanese automaker Honda Motor Co.

The new plant will have annual capacity of 600,000 scooters and motorcycles.

Shares of the company gained Rs 3.5, or 0.22%, to trade at Rs 1,624.80. The total volume of shares traded was 374,684 at the BSE (11.35 a.m., Thursday).

Disclosure: Author(s) does not own any of the stocks discussed here.

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