Motherson Sumi Systems Ltd on Friday said that the public shareholders (non-promoter) have voted in favour of the proposal with an overwhelming majority, thus paving the way for successful completion of the proposed restructuring. Under its proposed group restructuring, the company will demerge its domestic wiring harness (DWH) business into a new company that will eventually be listed.

In a statement, the company said for the NCLT convened meeting regarding the scheme of reorganisation, the voting results showed that 99.44 per cent of the non-promoter shareholders who voted, were in favour of the proposed restructuring.

“Also, the requirement of obtaining creditors approval has been waived off by the NCLT for the scheme. The public shareholders also approved the resolution on Related Party Transaction (RPT) through a separate EGM held on the same day,” Motherson Sumi (MSSL) said.

As part of the restructuring which was announced in July last year, after the demerger of DWH, group firm Samvardhana Motherson International Ltd (SAMIL) is to be merged into Motherson Sumi Systems to consolidate 100 per cent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in SAMIL under MSSL.

“MSWIL will benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) to cater to the fast-growing Indian automotive market. Also, MSWIL will bring in exciting new solutions for electric vehicle offerings from our customers,” the statement added.