Bosch Enters JV With Pretti India
Bosch Limited has executed a Joint Venture Agreement with Pretti India Private Limited.
The Parties have executed the Joint Venture Agreement for incorporation of a new joint venture company to be incorporated for the purpose of carrying out the business of manufacturing/assembly and supply of mechanical and electromechanical components and assemblies for automobile and nonautomobile industry.
The proposed shareholding of the new joint venture company shall be as Pretti - 60% Bosch - 40%.
Bosch has agreed to subscribe an amount not exceeding INR 8 crores and Pretti has agreed to subscribe an amount not exceeding IN R 12 crores in the equity share capital of the proposed Joint Venture Company to be incorporated for the said purpose.
Lock-in period of 5 years for both shareholders - no transfer of shares shall be permitted in the first five years of the JV Co.'s life, without the prior consent of the other party.
Upon expiry of the Lock-in period as mentioned above, the parties are free to transfer the shares by giving the right of first refusal to the other by following the procedure as per the said agreement.
Tag Right - if a party sells its shares to a third party, then the other party shall have the right to sell its own shares to the third party at the same rate.
Pretti shall have right to nominate one director. Bosch shall have right to nominate one director. The parties shall appoint one more director as may be mutually agreed.