Hero Group as well as Honda will sign a separation agreement this month

Hero Group as well as Honda will sign a separation agreement this monthHero Group as well as Honda will sign a separation agreement this month to finish their 26-yr-old partnership Hero Honda , unter this agreement the Indian partner will buy out the 26 % stake possessed by its Japanese counterpart.

Based on sources knowledgable of the development, both partners have decided that present royalty rate for each model paid to Honda will continue to be unchanged. The royalty given in 2009-2010 on an average was 2.3 % to 3 % of sales.

Additionally, Honda continues to offer technologies as well as models for the Hero Group for a transition time period, the minimum for which is until 2014 under their present partnership agreement.

The source mentioned interest of investor’s and all stakeholders of company have been provided priority during the discussions also it wouldn’t be compromised at any cost.

HeroHonda spokesperson rejected to comment. Honda said the firm and also its Indian companion “frequently hold talks regarding the future of the partnership. Nevertheless, currently, there’s nothing available to reveal.”

It is understood the HeroGroup is preparing funds to finance the acquistion of Honda’s stake.

The Hero group as well as Honda maintain 26 % each in Hero-Honda, that began operations in 1984 to turn into the world’s biggest twowheeler producer today.

Be Sociable, Share!
Tags: ,

Stock Market Basics For Beginners

Available Information Sources For Investment

Available Information Sources For Investment Internet Newspapers Advisory (expert analyst) Services Government publications Business Periodicals The Internet provides a lot of information about shares and other investment alternatives.  Available information can range from simple ...…

What Is a Premium Price

What Is a Premium Price Securities are usually released in denominations of Rs 10, 20 or 50. This is called as the Par Value or Face Value as mentioned previously. ...…

What Is The Floor Price?

What Is The Floor Price? Floor price is the minimum price where bids can be made. Book Building is fundamentally a procedure utilized in IPOs for effective price finding. The ...…

Why Do I Need To Take Investment Risk?

Why Do I Need To Take Investment Risk? [ad name="468x15- 5 link"] While most evident when markets are falling, threat is ever-present. However, it’s not something you want to avoid totally because without risk, ...…

Invest Regularly

Invest Regularly Invest Regularly : Improve the practice of adding to your recurring deposit and SIP (systematic investment plan of mutual fund) / deferred annuity ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics