Japanese FCC Co Buys Out Rico Auto’s Stake For Rs 495 Crore

Arvind Kapur’s Rico Auto Industries has given up its 50% stake in FCC Rico Ltd to its Japanese partner FCC Co Ltd. There was a joint venture company between Rico Auto and FCC Co with 50:50 share equity. The company sold its stake for Rs 495 crore.
"... The Board of Directors of Rico Auto Industries Ltd. on September 25, 2014 has approved the divestment of the entire 50 per cent stake of the Company in FCC RICO Limited, the joint venture between the Company and FCC Co Ltd, Japan, to FCC Co Ltd, Japan or its affiliates, a FCC Group Company for gross consideration of Rs 495 crore," the company informed Bombay Stock Exchange.
The company added, “The sale will be completed subject to completion of customary conditions precedent and such other regulatory conditions as may be required to be complied with as applicable".

The joint venture was established in 1997 and was exclusively into manufacturing and supplying of automobile clutch assemblies to OEMs of two wheelers and four wheelers. Some of its primary clients include Honda group companies, Suzuki, Yamaha, TVS, Piaggio and Bajaj.
Rico Auto, in its quarter ended 30 June, has declared that auto component maker has carried out an assessment to determine if there is a permanent diminution in the value of investments in two of its subsidiaries Rasa Autocom Ltd and Rico Jinfei Wheels Limited.

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