Announcement

**kaynmantis** · 10-18-2010, 06:46 PM

Hero will tie up with Ducati and launch "Hero Ducati Passion Pro xPlus".

Apart from the joke. I hope they have something up their sleeves. Hero needs to continue giving competition in the market to ensure that others will not sit back and relax. The hotter the competition, the bigger I smile

.

**Avenger88** · 10-24-2010, 11:23 PM

more news..

Hero Group prepares ground for Honda's exit-Corporate-TV-Economic Times

**undergroundrider** · 10-25-2010, 02:28 AM

Originally posted by kaynmantis View Post

Hero will tie up with Ducati and launch "Hero Ducati Passion Pro xPlus".

you made me lol

**bprags** · 12-05-2010, 12:47 AM

Honda Motor Co is expected to sell its entire 26 per cent stake in Hero Honda to its partner Munjals-promoted Hero Group and would earn USD 1.2 billion from the sale, Kyodo reported quoting Japanese Nikkei business daily.

"Honda and the Hero Group have reached the basic agreement this week to dissolve the partnership," Nikkei said, adding that the two companies will seek final approval from their respective board of directors later this month for the break-up.

The parting of ways comes 26 years after the joint venture was set up in 1984.
The Japanese firm will offload its entire stake by as early as March next year and will no longer provide technical support to Hero Honda, the paper said.

However, the two companies, which renewed the agreement for technology support from Honda to the JV in 2004, will let the pact run till its expiry in 2014, Nikkei said.
Honda proposes to focus its resources on the new wholly-owned subsidiary Honda Motorcycle and Scooter India (HMSI).

Hero Honda sold 4.5 million two-wheelers in the last fiscal, grabbing 48 per cent of the growing Indian two-wheelers market, which is the second biggest in the world after China.

Honda and the Munjals-promoted Hero group holds 26 per cent each in Hero Honda, the world's largest two-wheeler maker.

However, there has been market speculation that there is unease between the partners after the Japanese firm decided to enter the Indian two-wheeler market through its wholly- owned subsidiary Honda Motorcycle & Scooter India (HMSI).
Currently, Hero Honda is finalising plans to set up the fourth plant in the country. It already has three facilities at Dharuhera and Gurgaon in Haryana and at Haridwar in Uttarakhand with a total capacity of 50 lakh units a year.

On the other hand, HMSI has announced an investment of Rs 500 crore to set up its second plant near Bhiwadi (Rajasthan), with an annual capacity of six lakh units. Once the facility becomes operational, in the second half of 2011, the company's total annual capacity will reach to 22 lakh units.

HMSI is also reportedly scouting for a location to set up its third facility.

Honda to exit Hero Honda; to sell entire 26 per cent stake

**manan3230** · 12-05-2010, 01:19 AM

Originally posted by bprags View Post

Honda to exit Hero Honda; to sell entire 26 per cent stake

hmmmm
so will stock price of Hero Honda go down then ?

**manan3230** · 12-16-2010, 05:56 PM

Hero Honda sees royalty at current level after JV split - The Economic Times

**Rony** · 03-08-2011, 05:55 PM

Hero to buy out Honda stake in JV for $851 mn; stock down

8 Mar, 2011, 04.34PM IST,REUTERS

MUMBAI: Hero Investments has agreed to buy Honda Motors Ltd's 26 percent stake in Hero Honda Motors for around $851 million in a deal that will see the Japanese automaker exit its joint venture in India after more than 26 years.

Hero Investments is buying the stake at 739.97 rupees a share, it said in a statement, reflecting a nearly 50-per cent discount to Tuesday's trading price. Shares in Hero Honda fell more than 3 per cent following the news, but later recovered to end 0.77 per cent down at Rs 1518.15 on the Bonbay Stock Exchange .

"People are fearing that because of the low price, the company would be compensating Honda with higher royalty," an analyst with a local brokerage told Reuters, declining to be named.

Hero will pay Honda a royalty in exchange for technology, but details of that deal have not been disclosed.

Private equity firms Bain Capital and the Government of Singapore Investment Corp have agreed to invest in Hero Investments to help the group fund the acquisition, Hero Group said in a statement.

"The price at which it would give to PE investors will be more relevant," Ajay Shethiya, analyst with Centrum Broking said.

Financial details of the deal with Bain and GIC were not disclosed, but the company said it would use the funds to retire a significant portion of debt raised for the buyout.

Hero Group has raised nearly $749 million in debt to fund the buyout, a person with direct knowledge of the matter told Reuters.

The Hero Honda joint venture was India's largest motorcycle manufacturer with more than half the domestic market.

The deal allows Hero Group to explore new products and export opportunities in markets where Honda has a presence, a move it was barred from while in a venture with the Japanese automaker.

Honda also has a wholly owned subsidiary in India, which makes motorcycles and scooters.

Honda Motorcycle and Scooter India will invest 5 billion rupees ($110 million) in a new plant in the Indian state of Rajasthan, an executive said on Wednesday

Source: Hero to buy out Honda stake in JV for $851 mn; stock down - The Economic Times

Announcement

Hero Group May Buy 6% Stake in Hero Honda Directly from Honda by 24th October 2010

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