Battery maker Amara Raja has terminated the shareholders agreement between the Galla Family, Johnson Controls (Mauritius) Pvt. Ltd. and Johnson Controls Battery Group.
Consequent to the termination, which took effect April 1, a few other agreements, which include the technical assistance as well as the powerframe and technology collaboration agreements, stood terminated, also from the same date, Amara Raja Batteries Ltd. said in a regulatory filing on Wednesday.
As per the shareholding pattern, filed for December 2018 quarter, RN Galla Family Pvt Ltd holds 24.24%. With the 1.82% of Mangal Industries, the total holding of Indian promoters was 26.06%, a shade higher compared to the 26% of Johnson Controls (Mauritius).
On the reasons behind the termination, Amara Raja Batteries Ltd (ARBL) said in November 2018 Johnson Controls International PLC had announced that it wanted to sell its power solution business. Consequently, Johnson Controls and the Galla Family reached an agreement by which Galla Family would acquire 2% equity shares of the company from JC and terminate the shareholders agreement with effect from April 01, 2019.
The battery maker, however, expects no impact on the operation as a result of termination of the agreements. “As a progressive organisation, the company would continue to invest into new technologies and nurture partnerships,” the filing said.
Stating that the technical assistance agreement was entered into in 1997 and over the years all critical technologies had been fully absorbed, Amara Raja Batteries said it manufactured a wide range of batteries utilising most advanced product and process technologies to serve the customer requirements across various application segments.
Subsequent to signing of the power frame technology license agreement in September 2018, the company had received complete technology know-how and took all measures for implementing this technology for manufacturing batteries using advanced stamped grid plate making process.
Further, JC will continue to provide technology assistance to ARBL for an additional period as mutually agreed, the statement said.