The Japanese automaker Honda has bought the shares of Usha International which had a stake of 3.16 percent in Honda Siel Cars India (HSCI) and has become the 100 percent owner of the company. The buy-out at Rs 180 crore by the automaker ends the 16 year joint venture between Honda and Usha International.
Following the buy-out, the name of the company Honda Siel Cars India would be changed and Mr. Siddharth Shriram Chairman and Director Honda Siel and owner of Usha International will step down from both of his positions in Honda Siel Cars India.
According to a statement by Honda Siel Cars India, Usha International has sold its shares in the company based on mutual consent and that Usha International had been considering divesting its stake. Talks had been on between the two companies since 2011 and the conflict was based on the valuation of shares owned by Usha International. The price was finally set at Rs 100 per share.