CHENNAI: Automotive major ZF Group has sold 1,425,000 shares, equalling 7.5% stake, in its listed Indian subsidiary ZF CVCS India (ZF Commercial Vehicle Control Systems India) to “increase liquidity and financial flexibility for its growth plans,” the company said in a statement.
“ZF Group continues to hold a solid majority in ZF CVCS India,” the statement said.
The 7.5% stake will be sold to institutional investors, to increase ZF Group’s flexibility for its growth.
“The sale of shares has no effect on ZF’s control of ZF CVCS India, as it is the long-term strategy of ZF to maintain a solid majority shareholding in the entity,” said the statement. ZF CVCS India is the market-leader in the Indian CV supplier industry and remains an “important pillar in ZF´s global growth strategy,” it added.
With the commercial vehicle market seeing an upturn in India, ZF CVCS India has shown a strong operating and financial performance. “The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market,” said the statement.
“ZF Group continues to hold a solid majority in ZF CVCS India,” the statement said.
The 7.5% stake will be sold to institutional investors, to increase ZF Group’s flexibility for its growth.
“The sale of shares has no effect on ZF’s control of ZF CVCS India, as it is the long-term strategy of ZF to maintain a solid majority shareholding in the entity,” said the statement. ZF CVCS India is the market-leader in the Indian CV supplier industry and remains an “important pillar in ZF´s global growth strategy,” it added.
With the commercial vehicle market seeing an upturn in India, ZF CVCS India has shown a strong operating and financial performance. “The transaction will strengthen the financial flexibility of ZF, allowing it to invest in its further growth, and in the dynamically developing Indian market,” said the statement.
