Amtek Auto jumps 10% on asset sale plan

NEW DELHI: Shares of Amtek Auto surged over 10 per cent in Tuesday’s trade after the company said it had expanded its planned asset sale to include additional overseas businesses in a bid to reduce mounting debt on its balance sheet.

Quoting people familiar with the matter, Bloomberg on Monday reported that the auto component maker has appointed Rothschild & Co to advise it on the potential sale of all overseas operations, including those in the UK, US, Mexico, China as well as Germany.

The New Delhi-based company has been seeking bidders for its German unit Amtek Tekfor Holding since last year, the report said.

Following the reports, the stock rose 10.20 per cent to hit a high of Rs 52.90 on BSE.

Recently, ET quoted sources as saying that at a recent meeting held in Mumbai, banks led by IDBI Bank agreed in principle to convert a part of their debt into equity.

The lenders can take controlling stake by initiating a strategic debt restructuring ( SDR) that would allow them to convert a part of the debt into equity in cases where restructuring of debt has not helped revive the company, the ET report said.