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

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    Addicted Avenger88's Avatar
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    Default Hero Group May Buy 6% Stake in Hero Honda Directly from Honda by 24th October 2010

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


    Munjal family of Hero group may buy 6% stake in Hero Honda directly from Honda motor company by 24th October 2010 according to CNBC TV report. Hero Honda is a joint venture between Munjal family own Hero group and Honda motor corporation of Japan. Honda Motor corporation owns 26% stake in Hero Honda. Honda is divesting its 26% stake in Hero Honda to exit the joint venture.
    Earlier Munjal family was planning to form SPV (Special purpose vehicle) to buy the 26% stake of Honda in Hero Honda, now its planning to buy 6% directly from Honda. The deal may be finalised by 24th October 2010. The remaining 20% will be bought through SPV route. According to sources the deal is structuring between KKR and Munjal family for remaining 20% stake which is to be bought by SPV route.
    Currently the deal structure is like 51% of SPV will be owned by Munjal family which is 10.20% stake of Hero Honda and KKR will take 30% share of SPV which is 6% stake of Hero Honda. The Munjal family has offered additional 19% stake of SPV to KKR on which consideration is going on. If KKR will accept the term it will have 9.8% in Hero Honda. Munjal family owned hero group directly or indirectly own 42.2% in Hero Honda.



    NOW whasts gonna happen to all the hero honda vehicles on road and that are yet to be sold, and those people who have plans to buy hero honda vehicles this diwali?

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    Super Moderator sunilg's Avatar
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    News approved.
    (Been There Done That) x 3.25

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    Rusted Satyamzma's Avatar
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    now that's interesting piece of news....it's hard to guess the customers mindset weather they still want to go for HH products due to their reliability and after sales service or simply deny purchasing HH vehicles..

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    one more bad news--

    Honda gets ready to split

    source -

    Honda gets ready to split

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    Addicted Avenger88's Avatar
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    Quote Originally Posted by Satyamzma View Post
    one more bad news--

    Honda gets ready to split

    source -

    Honda gets ready to split


    Hero honda was so Good.. why Honda wants to split now..??

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    Does Hero have a R&D unit? If not, Hero may just continue to buy technology from Honda to make motorcycles. If not Honda, it could possibly look to go the Yamaha way and acquire stake is an R&D company and make the latter's technology part of its lineup.
    Besides, divestments like these do not happen overnight. Honda might be obliged to support Hero in one way or the other.
    But this is all speculation! Very interested to see what happens. Hero must have a plan, for without it the stock will take a hit, badly!

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    Rusted madhav krishna's Avatar
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    Quote Originally Posted by Avenger88 View Post

    Hero honda was so Good.. why Honda wants to split now..??
    Its simple. Honda has got a share of just 15% in HH. But the HH gets its the engines from honda. Hence the honda is putting in a lot of effort in the success of HH & HH cannot produce its bikes without honda. So who would like to have a small share in profits when it can have the whole profit for itself?? Hence the honda will get split from the hero & then will launch all the bikes of HH under its name & will earn huge profits as HH did.
    NOT BEEN THERE NOT DONE THAT

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    Addicted Avenger88's Avatar
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    I was about to buy HUNK this Diwali..
    Alas.. I hope there,s some good news like HONDA will start giving service for HUNK and other bikes

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    Rusted Satyamzma's Avatar
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    Quote Originally Posted by Avenger88 View Post
    I was about to buy HUNK this Diwali..
    Alas.. I hope there,s some good news like HONDA will start giving service for HUNK and other bikes
    there is no problem in going for HH products....service and support will be available in the future also...

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    So HH is going to fall,?.wat about spares,service,and resale value, HH fans crave for.
    and a 'Hero hunk'? Eww .
    everybody dies, but not everyone LIVES...
    Carpe diem baby[SIGPIC][/SIGPIC]

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