Mexico City, November 1, 2012/kuo.com.mx - - Grupo KUO, S.A.B. de C.V. (BMV: KUO), announced today that it increased its equity stake in KUO Divgi Automotive Private Limited ("KUO Divgi"), its transmissions and transmission’s components business in India, to 96.5%; through its subsidiary KUO INDIA, S.A. de C.V. ("KUO INDIA").
Under the agreement executed to form the joint venture with Divgi Metalwares Pvt. Ltd. ("Divgi"), Grupo KUO held a 60% stake in KUO Divgi. The agreement also stipulated that both parties should contribute their fair share to the growth of this company, or failing that, their share would be diluted, as it happened.
About this increase Juan Marco Gutiérrez Wanless, CEO of Grupo KUO, said: “We will maintain the same strategy we designed for this market, because we already have a significant presence in India and throughout the more than two years since we launched this project, we have acquired the necessary market knowledge”. He added: “In fact, we are in the process of building a plant in the city of Pune to achieve better operating and logistics conditions. We expect this plant to begin operations in 2013.”
Starting on the date it increased its equity participation in KUO Divgi, KUO INDIA may exercise a purchase option for the remaining 3.5%, owned by Divgi, to consolidate its 100% ownership in KUO Divgi.