New Delhi: The country's largest two-wheeler maker Hero Honda on Friday said Japanese promoter Honda's two representatives on its board - Toshiaki Nakagawa and Sumihisa Fukuda - have resigned, a step towards the final break-up of the joint venture.
"Toshiaki Nakagawa, Joint Managing Director, and Sumihisa Fukuda, Technical Director, of the company have resigned from the board of directors with effect from March 22, 2011, and the same has been considered and approved by the board of directors of the company," Hero Honda said in a filing to the Bombay Stock Exchange (BSE).
In December last year, the Indian promoter of the two-wheeler maker, the BM Munjal family, had agreed to buyout the entire 26 per cent stake of Honda in Hero Honda for Rs 3,841.83 crore.
Last month, the Cabinet Committee on Economic Affairs had approved a proposal for a Rs 4,500 crore foreign direct investment in Hero Investments Pvt Ltd (HIPL), one of the main shareholders in Hero Honda, by Bain Capital and Lathe Investment Pvt Ltd.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, a part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up a 29 per cent stake in HIPL for Rs 3,650 crore.
HIPL, the main shareholders in Hero Honda, held a 17.33 per cent stake in the company as of December 31, 2010.
After buying out Honda from Hero Honda, HIPL will own 43.33 per cent of India's largest two-wheeler maker.
Shares of Hero Honda were trading 0.78 per cent up at Rs 1,599 a piece on the BSE in the late afternoon on Friday.