Amtek to shortlist bidders for German car parts maker Tekfor, say sources: Reuters

Loss-making Indian car parts maker Amtek Auto is expected to shortly shortlist bidders for its German unit Tekfor as soon as next week, a year after starting a bumpy divestment process last year, people close to the matter said.

Amtek, which has switched advisors and is now working with Rothschild on the divestment, has received eight first-round bids for the asset, valuing it at up to 520 million euros ($573 million), one of the sources said.

Seven of the bids came from car parts makers, including a state-owned Chinese firm, while one offer was made by a private equity group, the source added.

People familiar with the industry said they see Spain’s CIE – part-owned by India’s Mahindra Group – and Canada’s Linamar as having high chances of being shortlisted. It remained unclear whether Japan’s Musashi Seimitsu, which earlier this year bought peer Hay Group, has also made a competitive offer.

Amtek, Rothschild and the other bidders declined to comment or were not immediately available for comment.