America’s Blackstone to buy 32% stake in Sona BLW Precision Forgings for USD300m
By Jim Gibbins - 1st March 2019
Gurugram / Mumbai / USA – Private equity firm, The Blackstone Group L.P.1 of New York, USA has agreed terms to acquire a 32% stake in steering and drive line system forging components maker, Sona BLW Precision Forgings Ltd2 of Gurugram from JM Financial Services Ltd3 of Mumbai for USD300m. The transaction is subject to clearance from the Competition Commission of India4. The remaining shareholding of 68% in Sona BLW is to be retained by Mr Sunjay Kapur and family.
Once the change of ownership is complete, the companies are proposing a merger between Sona BLW and starter and alternator specialist, Comstar Automotive Technology Pvt Ltd5 of Chennai. Comstar is a wholly-owned subsidiary of Blackstone, following its purchase of almost 100% of the Indian company in April 2018 for USD140m.
