17 October, 2017
Allen & Overy advised the bookrunning lead managers on the recent qualified institutions placement of shares by leading global auto parts business, Motherson Sumi Systems Ltd (MSSL).
The transaction involved a private placement of shares into the U.S. under Section 4(a)(2) of the U.S. Securities Act of 1933 (Securities Act) and an offering outside the U.S. in reliance on Regulation S of the Securities Act.
The qualified institutions placement (QIP) raised Indian Rupees 19,934.49 million (approximately USD 300million) in capital which will be used for MSSL’s general corporate purposes and to achieve the objectives of MSSL’s five year plan “Vision 2020.”
The QIP underscores the strength of Allen & Overy’s equity capital markets expertise as well as the firm’s relationship with the Motherson group. This issuance follows a number of recent high-yield bond issuances for the Motherson group, including advising on the high yield bond issuance by MSSL’s Dutch subsidiary, Samvardhana Motherson Automotive Systems Group B.V., on its senior secured USD400 million bond issue earlier this year which opened the Indian high yield market after a year-long hiatus.
Commenting on the transaction, Allen & Overy U.S. securities partner Amit Singh said: “The issuance demonstrates the strength of Allen & Overy’s equity capital markets practice in India and across Asia Pacific. The transaction required us to leverage our global presence with diligence required in various jurisdictions given the international nature of the issuer’s business.”
The lead managers on the transaction included JM Financial Institutional Securities Limited, UBS Securities India Private Limited, ICICI Securities Limited, IDFC Bank Limited and IIFL Holdings Limited. AZB & Partners acted as legal advisers to MSSL as to Indian law and Trilegal acted as legal advisers to the lead managers as to Indian law.
The Allen & Overy team was led by Amit Singh from Hong Kong with support from Michele Discepola and Julie Song.
