In a significant move to strengthen its position in the electric vehicle (EV) space, Uno Minda Limited has announced the approval of acquiring an additional 49.90% equity stake in its subsidiary, UnoMinda EV Systems Private Limited (UMEVS), from FRIWO Geratebau GmbH. This acquisition not only increases Uno Minda’s ownership in UMEVS but also includes the transfer of critical intellectual property rights, know-how, and the R&D team associated with e-drive technologies from FRIWO Group entities in Germany and Vietnam. These technologies are pivotal for developing electric powertrain solutions tailored for two and three-wheeler electric vehicles.
Key Highlights of the Acquisition:
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Target Entity: UnoMinda EV Systems Private Limited (UMEVS)
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Vendor: FRIWO Geratebau GmbH
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Consideration: The total purchase consideration for the equity stake, e-drive technologies, and associated assets is approximately INR 195 Crores, with a cash consideration of INR 141.27 Crores.
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Shares Acquired: 1,69,66,000 equity shares, representing 49.90% of UMEVS’s equity shareholding.
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Expected Completion: The transaction is expected to be finalized by Q1 of FY26.
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Subsidiaries Involved: UMEVS and Minda Industries Vietnam Company Limited.
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Reason for Acquisition: Post-acquisition, UMEVS will become a Wholly Owned Subsidiary of Uno Minda Limited. This aligns with the company’s core business strategy and strengthens its capabilities in the rapidly growing EV sector.
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Related Party Transaction: The acquisition is classified as a related party transaction and will be conducted at arm’s length, based on a third-party valuation report.
Why This Acquisition Matters:
The EV market is witnessing exponential growth, driven by the global shift towards sustainable mobility solutions. By acquiring FRIWO’s stake in UMEVS, Uno Minda is not only consolidating its ownership but also gaining access to advanced e-drive technologies and a skilled R&D team. These assets will enable the company to enhance its product offerings in the electric two and three-wheeler segments, which are critical markets in India and other emerging economies.
The acquisition also underscores Uno Minda’s commitment to innovation and its strategic focus on becoming a key player in the EV ecosystem. With UMEVS becoming a wholly owned subsidiary, Uno Minda will have greater control over its EV-related operations, allowing for more streamlined decision-making and faster go-to-market strategies.
Looking Ahead:
As the EV industry continues to evolve, Uno Minda’s investment in cutting-edge technologies and its focus on vertical integration position it well to capitalize on the growing demand for electric mobility solutions. The completion of this acquisition by Q1 FY26 will mark a significant milestone in the company’s journey towards becoming a leader in the EV space.
Stay tuned for more updates as Uno Minda accelerates its efforts to drive the future of sustainable transportation!
