Saic recently announced a major announcement that its majority-owned subsidiary MG India (MGI) plans to bring in new investors through equity transfer and capital increase. These include JSW Ventures Singapore Pte.Limited (JSW Singapore), a unit of Indian steel giant JSW Group. The purpose of this initiative is to deepen the company's international business strategy, seize the opportunities of the rapid development of the Indian market, increase the MG brand's share in this market, and effectively prevent operational risks.
According to the announcement, JSW Singapore will subscribe for 1.012 billion shares in MGI and 354 million additional shares issued by MGI for a combined shareholding of 35 per cent, making it MGI's second largest shareholder. In addition, other investors, including IndoEdge India Fund, Dealer Trust and Employee stock ownership Scheme, each subscribed for the additional shares issued by MGI.
After the completion of the equity transfer and capital increase, SAIC will still hold 49% of MGI's equity and a higher proportion of voting rights, and continue to maintain its holding status. The deal is expected to add 5 billion to 7 billion yuan to SAIC's net profit, further boosting the company's development.
This partnership is also an important strategic move for JSW Group. As a multinational giant in India, JSW Group has strong strength and resources in steel and other fields, and through the cooperation with SAIC, it is expected to further expand its territory in the automotive industry and achieve diversified development.
As for MGI, as an important subsidiary of SAIC in the Indian market, its development potential is huge. Established in 2017, MGI has gone from strength to strength since its inception, with sales climbing year by year, becoming one of the important brands in the Indian market. The introduction of new investors will inject new vitality and capital into MGI to further enhance its competitiveness and influence in the Indian market.
Overall, this cooperation is of great significance to SAIC, JSW Group and MGI. Through joint cooperation, the two sides will jointly share market opportunities, jointly cope with challenges, and achieve a win-win situation. At the same time, this will also inject new impetus into the economic development and industrial upgrading of the two important markets of China and India, and promote the cooperation and exchanges between the two sides in the automotive industry and other fields to achieve greater results.
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