How to invest in Kia’s business in India
Kia is in talks with some of the world’s biggest investors for a potential deal with Kia Motors India, which could see the firm buy into the carmaker.
Kia is working with global finance firm KMG Capital and global asset manager SBI on the transaction, which would see Kia buy into Kia at a price of around $300 million (Rs 14,000 crore) in exchange for its shares in the company.
The deal would not be subject to the approval of the government, which has no control over the company or its operations.KIA Motors is owned by the Chinese government and is based in Mumbai.
The Kia brand was founded in Japan in 1955.
The deal is believed to be one of the first of its kind, with no known transaction for Kia, which is currently undergoing a turnaround as it seeks to become a bigger player in the global auto market.KMG Capital is a subsidiary of KMG Financial Group, which also owns UBS and U.S. investment bank Goldman Sachs.SBI is the chief operating officer of the Indian government, while SBI has an investment portfolio of over $1 trillion.KGM shares closed at Rs 447.51 on Wednesday.