August 17, 2022

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KONGSBERG AUTOMOTIVE TO DIVEST ITS LDC BUSINESS UNIT TO SUPRAJIT ENGINEERING LIMITED

Zurich, October 28, 2021: Kongsberg Automotive ASA (“Kongsberg Automotive“) has entered into an agreement for the sale of the Mild-Obligation Cables (“LDC”) small business device to Suprajit Engineering Constrained (“Suprajit”). The LDC business unit is engaged in the improvement and manufacture of mechanical and electro-mechanical light-weight-responsibility cables largely utilized in on-freeway and off-freeway apps.

This transaction is a element of the transformational ‘Shift Gear’ application at Kongsberg Automotive. It seeks to boost overall performance, enhance and upcoming-evidence the item portfolio as effectively as enable enhanced sustainability for Kongsberg Automotive and its partners.

Kongsberg Automotive‘s World wide Management Crew, led by President & CEO Joerg Buchheim, is evaluating, and building its technologies-pushed small business toward e-mobility in get to situation the firm proficiently and sustainably for the foreseeable future. As aspect of these evaluations, it regarded the sale of the LDC enterprise device and the Light-Duty Cables portion of the Off-Freeway company unit to Suprajit, a global chief in the automotive cable marketplace.

The two organizations entered into a definitive agreement on Oct 28, 2021. Less than the terms of the transaction, Suprajit will get Kongsberg Automotive’s LDC company unit for an Company Price of EUR 37.7 million. The transaction, subject to regulatory approvals and other customary closing situations and changes, is predicted to close in the very first quarter of 2022. With this transaction, all associated contracts, workers, and other assets will be transferred to Suprajit. This consists of LDC’s a few key functions in Mexico, Hungary, and China, relating to a complete of somewhere around 1,300 staff members.  

“We are confident that this step enables Kongsberg Automotive to further more target our sources and expenditure on our higher-prospective, engineering-driven and know-how-intense enterprise parts. We strongly imagine that this transaction is in the greatest interest of Kongsberg Automotive and our shareholders and also offers a excellent opportunity for the LDC staff and the new proprietor Suprajit to achieve economies of scale” says Joerg Buchheim, President & CEO of Kongsberg Automotive.

“The LDC business device of Kongsberg Automotive is of significant strategic significance for Suprajit. With 3 manufacturing units in Hungary, Mexico, and China, LDC enhances Suprajit’s geographical footprint and delivers us with an enhanced purchaser listing. LDC’s workforce and engineering abilities will even further fortify Suprajit Engineering Limited. Their cable small business will solidify our stature as a big world player in mechanical cable systems. The electromechanical actuation division will be a new, remarkable enterprise for us to enter into,” suggests Ajith Rai, Founder and Chairman of Suprajit.

We invite you to Kongsberg Automotive’s media and investors presentation at 10:30 CET on Friday, Oct 29, 2021, where by we will also response concerns on the sale of the LDC organization unit. Meeting call registration is available at: https://globalmeet.webcasts.com/starthere.jsp?ei=1509913&tp_critical=b33514f0f5

Rothschild & Co acted as economic adviser and Latham & Watkins acted as lawful adviser to Kongsberg Automotive.

The information and facts in this announcement is thought of inside of information pursuant to the EU Sector Abuse Regulation and is subject matter to the disclosure demands pursuant area 5-12 of the Norwegian Securities Trading Act. This announcement was published by Kongsberg Automotive‘s investor relations call as set out over.

Ahead-looking statements

This announcement have forward-looking statements. Ahead-hunting statements are statements that are not historic points and may perhaps be identified by text this kind of as “think”, “assume”, “anticipate”, “tactic”, “intends”, “estimate”, “will”, “might”, “should” and equivalent expressions. The forward-seeking statements in this announcement are primarily based upon several assumptions, which in turn could be dependent on even further assumptions. While Kongsberg Automotive thinks that these assumptions had been affordable when produced, these assumptions are inherently subject matter to significant known and mysterious risks, uncertainties, contingencies and other essential aspects that are tough or difficult to predict and are beyond its handle. A variety of factors could bring about Kongsberg Automotive‘s real effects to vary materially from those projected in a ahead-on the lookout statement. No assurances can be specified that the assumptions underlying the ahead-searching statements establish to have been accurate. Kongsberg Automotive disclaims any obligation to update or revise any forward-wanting statements, whether or not as a outcome of new information and facts, long run occasions or in any other case.

For further details, please get hold of:

Media get in touch with:

Kongsberg Automotive
Therese Sjoborg Skurdal
[email protected]
+47 982 14 059

Suprajit Engineering RestrictedMr. Medappa Gowda J              
Main Monetary Officer& Company Secretary
[email protected]

Mrs. Bhargavi AithalAGM -Company Communications
[email protected]

About Kongsberg Automotive ASA

Kongsberg Automotive gives earth course solutions to the global car sector. Our products enrich the driving working experience, earning it safer, far more comfy and sustainable. With close to 11,000 staff members in 19 nations, Kongsberg Automotive is genuinely a world wide supplier. The company has additional than 27 production facilities around the globe. The solution portfolio includes seat comfort systems, driver and motion management units, fluid assemblies, and industrial driver interface products and solutions produced for world wide car manufacturers. Discover far more information and facts at www.kongsbergautomotive.com.

About Suprajit Engineering Minimal

Suprajit is India’s most significant automotive cable and halogen bulb maker with an annual global potential of 300 million cables and 110 million halogen bulbs. Suprajit’s buyer listing incorporates most Indian automotive majors. It also exports to lots of marquee international clients. Locate additional details at: www.suprajit.com

https://news.cision.com/kongsberg-automotive-asa/r/kongsberg-automotive-to-divest-its-ldc-enterprise-unit-to-suprajit-engineering-limited,c3442578

https://mb.cision.com/Key/1438/3442578/1488043.pdf

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