The eBearing News
October 26, 2001
SKF Seeks Government Approval
for Potential Larger Stake in SKF India
copyright © 2001 eBearing Inc.
SKF AB (Gothenberg, Sweden) has asked the Indian government for approval to acquire
as much as 76.6% of SKF Bearings India. It currently owns 51%.
The additional holdings, according to the request, would only be purchased if the
proposed share sale is not fully subscribed.
In July, SKF India announced plans to issue stock and debt in an effort to
secure additional funding for planned expansions and retire high-cost debt. SKF
Sweden's backup plan would assure the needed funding.
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Managing director of SKF India, Torsten Nordgren, said the application to India's Foreign
Investment Promotion Board was only a backup plan. "The proposal is purely a formality,"
he said, noting SKF expects the stock offering will be fully subscribed. If that happens,
SKF Sweden would not step in and its holdings would remain at 51%.
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