Steel Strips Wheels Ltd (SSWL), a leading manufacturer of automotive wheels, has announced that it will acquire AMW Autocomponent Ltd (AACL), a company that was undergoing insolvency proceedings, for Rs 138 crore. The acquisition is part of a resolution plan approved by the National Company Law Tribunal (NCLT) Ahmedabad.
According to a regulatory filing by SSWL, the company will infuse Rs 138.15 crore into AACL through a combination of equity and debt. This will be used to settle the dues of all the creditors of AACL, including financial creditors, operational creditors, workmen/employees and others. The filing also stated that this will be considered as the full and final discharge of SSWL’s obligation under the resolution plan.
The acquisition will help SSWL expand its product portfolio and market share in the automotive wheel segment, which includes both steel and alloy wheels. AACL was formerly a subsidiary of Asia MotorWorks Ltd (AMW), a commercial vehicle manufacturer.
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