Regulatory Filings • Oct 28, 2021
Regulatory Filings
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KONGSBERG AUTOMOTIVE TO DIVEST ITS LDC BUSINESS UNIT TO SUPRAJIT ENGINEERING LIMITED
Zurich, October 28, 2021: Kongsberg Automotive ASA ("Kongsberg Automotive") has
entered into an agreement for the sale of the Light-Duty Cables ("LDC") business
unit to Suprajit Engineering Limited ("Suprajit"). The LDC business unit is
engaged in the development and manufacture of mechanical and electro-mechanical
light-duty cables mainly used in on-highway and off-highway applications.
This transaction is a part of the transformational 'Shift Gear' program at
Kongsberg Automotive. It seeks to improve performance, optimize and future-proof
the product portfolio as well as enable improved sustainability for Kongsberg
Automotive and its partners.
Kongsberg Automotive's Global Leadership Team, led by President & CEO Joerg
Buchheim, is evaluating, and developing its technology-driven business towards e
-mobility in order to position the company effectively and sustainably for the
future. As part of these evaluations, it considered the sale of the LDC business
unit and the Light-Duty Cables portion of the Off-Highway business unit to
Suprajit, a global leader in the automotive cable industry.
The two companies entered into a definitive agreement on October 28, 2021. Under
the terms of the transaction, Suprajit will acquire Kongsberg Automotive's LDC
business unit for an Enterprise Value of EUR 37.7 million. The transaction,
subject to regulatory approvals and other customary closing conditions and
adjustments, is expected to close in the first quarter of 2022. With this
transaction, all related contracts, employees, and other assets will be
transferred to Suprajit. This includes LDC's three main operations in Mexico,
Hungary, and China, concerning a total of approximately 1,300 employees.
"We are convinced that this step allows Kongsberg Automotive to further focus
our resources and investment on our high-potential, technology-driven and know
-how-intensive business areas. We strongly believe that this transaction is in
the best interest of Kongsberg Automotive and our shareholders and also offers a
great opportunity for the LDC employees and the new owner Suprajit to achieve
economies of scale" says Joerg Buchheim, President & CEO of Kongsberg
Automotive.
"The LDC business unit of Kongsberg Automotive is of high strategic importance
for Suprajit. With three manufacturing units in Hungary, Mexico, and China, LDC
enhances Suprajit's geographical footprint and provides us with an enhanced
customer list. LDC's employees and engineering capabilities will further
strengthen Suprajit Engineering Limited. Their cable business will solidify our
stature as a major global player in mechanical cable systems. The
electromechanical actuation division will be a new, exciting business for us to
enter into," says Ajith Rai, Founder and Chairman of Suprajit.
We invite you to Kongsberg Automotive's media and investors presentation at
10:30 CET on Friday, October 29, 2021, where we will also answer questions on
the sale of the LDC business unit. Conference call registration is available at:
https://globalmeet.webcasts.com/starthere.jsp?ei=1509913&tp_key=b33514f0f5
Rothschild & Co acted as financial adviser and Latham & Watkins acted as legal
adviser to Kongsberg Automotive.
The information in this announcement is considered inside information pursuant
to the EU Market Abuse Regulation and is subject to the disclosure requirements
pursuant section 5-12 of the Norwegian Securities Trading Act. This announcement
was published by Kongsberg Automotive's investor relations contact as set out
above.
Forward-looking statements
This announcement contain forward-looking statements. Forward-looking statements
are statements that are not historical facts and may be identified by words such
as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will",
"may", "should" and similar expressions. The forward-looking statements in this
announcement are based upon various assumptions, which in turn may be based on
further assumptions. Although Kongsberg Automotive believes that these
assumptions were reasonable when made, these assumptions are inherently subject
to significant known and unknown risks, uncertainties, contingencies and other
important factors that are difficult or impossible to predict and are beyond its
control. Various factors could cause Kongsberg Automotive's actual results to
differ materially from those projected in a forward-looking statement. No
assurances can be given that the assumptions underlying the forward-looking
statements prove to have been correct. Kongsberg Automotive disclaims any
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For further information, please contact:
Media contact:
Kongsberg Automotive
Therese Sjoborg Skurdal
+47 982 14 059
Suprajit Engineering Limited
Mr. Medappa Gowda J
Chief Financial Officer& Company Secretary
Mrs. Bhargavi Aithal
AGM -Corporate Communications
About Kongsberg Automotive ASA
Kongsberg Automotive provides world class products to the global vehicle
industry. Our products enhance the driving experience, making it safer, more
comfortable and sustainable. With approximately 11,000 employees in 19
countries, Kongsberg Automotive is truly a global supplier. The company has more
than 27 production facilities worldwide. The product portfolio includes seat
comfort systems, driver and motion control systems, fluid assemblies, and
industrial driver interface products developed for global vehicle manufacturers.
Find more information at www.kongsbergautomotive.com.
About Suprajit Engineering Limited
Suprajit is India's largest automotive cable and halogen bulb maker with an
annual global capacity of 300 million cables and 110 million halogen bulbs.
Suprajit's customer list includes most Indian automotive majors. It also exports
to many marquee global customers. Find more information at: www.suprajit.com
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