Stoneridge Announces Sale of Minority Interest in Minda Stoneridge Instruments Ltd.

Rhea-AI Summary

Stoneridge, Inc. (NYSE: SRI) announced a Share Purchase Agreement to sell its 49% stake in Minda Stoneridge Instruments Ltd. to Minda Corporation Limited for $21.5 million. The transaction is expected to close by December 30, 2021, pending customary conditions. Stoneridge CEO Jon DeGaynor highlighted this move as part of the company's strategic transformation, allowing for better resource alignment. The company reported equity earnings from Minda Stoneridge of $1.3 million for the first nine months of 2021 and $1.5 million and $1.6 million for 2020 and 2019, respectively.

Positive

• Sale of 49% stake in Minda Stoneridge for $21.5 million provides liquidity.
• Strategic focus on core areas of opportunity aligns resources efficiently.

Negative

• None.

NOVI, Mich., Nov. 2, 2021 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI), a leading designer and manufacturer of highly engineered electrical and electronic vehicle systems, today announced the Company entered into a Share Purchase Agreement (the "SPA") to sell its minority interest in Minda Stoneridge Instruments Ltd. ("MSIL"), which represents 49% of the total outstanding equity of MSIL, to Minda Corporation Limited ("Minda").  The purchase price of the MSIL equity shares is $21.5 million equivalent Indian Rupee which is payable in U.S dollars at closing.  The parties expect to close the transaction by December 30, 2021, subject to the satisfaction of customary closing conditions. 

Jon DeGaynor, president and chief executive officer commented, "This transaction allows Stoneridge to continue its transformation by aligning our resources with our greatest areas of opportunity.  We value the partnership we have developed with Minda through MSIL and wish them continued success going forward."

Prior to entering into the SPA, the Company and Minda owned 49% and 51%, respectively, of MSIL. MSIL is based in India and manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle, commercial vehicle and automotive markets.  The Company recognized equity in earnings of MSIL of $1.3 million for the nine months ended September 30, 2021, and $1.5 million and $1.6 million for the years ended December 31, 2020, and 2019, respectively.

About Stoneridge, Inc.

Stoneridge, Inc., headquartered in Novi, Michigan, is a leading global designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, commercial vehicle, off-highway, motorcycle and agricultural vehicle markets. Additional information about Stoneridge can be found at Stoneridge.com. 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/stoneridge-announces-sale-of-minority-interest-in-minda-stoneridge-instruments-ltd-301414071.html

SOURCE Stoneridge, Inc.

FAQ

What is the amount Stoneridge is receiving from the sale of its stake in MSIL?

Stoneridge is receiving $21.5 million from the sale of its stake in Minda Stoneridge Instruments Ltd.

When is the expected closing date for the Stoneridge and Minda transaction?

The transaction is expected to close by December 30, 2021.

How much did Stoneridge report as equity earnings from MSIL in 2021?

Stoneridge reported equity earnings of $1.3 million from MSIL for the nine months ended September 30, 2021.

What percentage of MSIL was owned by Stoneridge prior to the sale?

Stoneridge owned 49% of Minda Stoneridge Instruments Ltd. prior to the sale.