India's JBM Auto top contender for controlling stake in SML Isuzu - CNBC-TV18 (updated)

Jbm Auto

16/06/2023 12:16

(Adds deal details throughout, closing levels)
       BENGALURU, June 16 (Reuters) - 
    India's JBM Auto  JBMA.NS  is the leading contender to
acquire a controlling stake in automaker SML Isuzu  SMLI.NS ,
CNBC-TV18 reported on Friday, citing sources. 
    Japan's Sumitomo Corporation  8053.T , which holds 43% of
India-based SML, is looking to exit its operations in India and
talks are at an advanced stage, the sources said.
        JBM, SML and Sumitomo did not immediately respond to
Reuters' requests for comment. 
  
        The report did not mention any other bidders for the
stake.
  
        JBM is mulling various options to acquire the
shareholding, including cash as well as a share swap deal, the
report added. 
  
        The sources said that JBM has started a due diligence
process, and the deal is likely to value SML at a premium to its
current share price. 
  
        Shares of SML Isuzu jumped as much as 7.7% after the
report but trimmed some gains to close 3.1% higher at 1,154.50
rupees.  
  
        
  
        
  
    
    

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Savio
D'Souza and Sonia Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))