New Delhi, July 10 -- News of a business restructuring at Motherson Sumi Systems Ltd drove down the shares of the auto components supplier by about 5.4% on Friday, 3 July.
The complex restructuring has two components.
One, Motherson will de-merge its domestic wiring harness (DWH) division, which will be listed eventually. Two, promoter holding company, Samvardhana Motherson International Ltd (Samvardhana) will be merged into Motherson through a share swap, and will be renamed Samil. The newly formed Samil would also own a 100% stake in the international subsidiary, SMRP BV. Currently, Motherson and Samvardhana hold a 51% and a 49% stake in SMRP, respectively.
There are good reasons for investors' displeasure over this byzantine arrangeme...