Amtek Auto rallies over 5% on reports of acquisition plans

NEW DELHI: Amtek Auto rallied as soon as 5.03 per cent in trade on Tuesday, after the auto component maker Amtek Auto is close to acquiring three foreign companies that have a combined annual turnover of over Rs 2,000 crore, according to people close to the development.

Delhi-based Amtek Auto, the flagship of the $2.7-billion Amtek Group, will make the acquisition through a wholly-owned Singapore subsidiary, ET reported quoting these people close to the development.

At 09:45 a.m.; Amtek Auto pared some of its morning gains but was still trading 1.7 per cent higher at Rs 210. It hit a low of Rs 208.55 and a high of Rs 218.20 in trade today.

Two of these companies are based out of Germany while the third is headquartered in Southeast Asia. The names of the companies could not be confirmed till the time of going to the press, said the ET report. Amtek did not respond to an email query on its acquisition plans and the targeted companies.

John Flintham, global CEO at Amtek Group, told ET: "Amtek Group is always looking for acquisitions as part of its high growth strategy. We are always evaluating plans to have trans-continental transactions that will not only reinforce our European manufacturing platform, but also expand to new attractive territories like Southeast Asia."