Amtek Auto close to selling German unit for $700 mn: report

Amtek Auto is reported to be close to selling its profitable German unit for about $700 million to a foreign buyer in order to cut its debt.

The debt-ridden automobile component maker has an equity capital of Rs44.95 crore.

According to reports, Amtek Auto is close to selling its profitable German unit, Tekfor, for about $700 million (Rs4,690 crore) to reduce its debt. The consolidated debt of the group is estimated to be about $2.2 billion (Rs14,700 crore).

The group also plans to sell 50 per cent share in a joint venture unit and a domestic food business, as well as raise funds from three overseas investors. It claims that after these deals are done, the debt of the company will come down by $1 billion (Rs6,700 crore) in the next 12 months, the reports added.

Amtek Auto reported a net loss of Rs528.69 in its fiscal Q2 ended March 2016 compared with net profit of Rs129.82 crore in Q2 ended March 2015. Net sales fell 33 per cent to Rs608.75 crore in Q2 ended March 2016 over Q2 ended March 2015.

Amtek Auto is one of the largest integrated automotive component manufacturers in India with a strong global presence. It has a presence in forging, grey and ductile iron casting, gravity and high-pressure aluminium die casting and machining and sub-assembly. The company also manufactures components for non-auto sectors such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment. The company has manufacturing facilities in India, Europe and North America.