SMSamvardhana Motherson International517334New project launch

Board approves new Paraguay wiring harness plant via acquisition of 100% stake in SPV

Board approved a new Paraguay manufacturing facility via acquisition of 100% of Golden Bridge Sociedad Anónima, an SPV with nil turnover.

By ScoutQuest · Thu 5 Nov 2026, 3:04 PM IST · 2 min read

Stake Acquired

100% of Golden Bridge Sociedad Anónima

Purchase Price

USD 1 plus approx USD 8,000 legal fee

Planned Capitalisation

PYG 68,430 million (approx EUR 10 million), expected completion Q3 FY 2026-27

What the board has approved

• The Board, at its meeting on November 05, 2026, considered and approved the setting up of a new manufacturing facility in Paraguay, South America.
• The route is the acquisition of 100% of the equity share capital of Golden Bridge Sociedad Anónima, a special purpose vehicle incorporated as a stock corporation under the laws of Paraguay.
• The entity is proposed to be renamed Motherson PKC Wirings Systems Paraguay S/A, or any other name approved by the relevant regulatory authority.

What the target entity is

• Golden Bridge Sociedad Anónima is an SPV set up to build and operate the new plant at Guarambaré (Grand Asunción area), Paraguay.
• It has not undertaken any business operations or other transactions, and its turnover is Nil, including for the last three financial years.
• It was incorporated on March 17, 2026, and registered at the public registry in Paraguay on April 07, 2026.
• The line of business is Automotive Components – Wiring Harness Systems, the same line as PKC Group, part of the company's Wiring Harness Business Division.

Why the company is doing this

• To set up a new manufacturing facility in Paraguay to support regional growth.
• To provide a fast-track option to customers by acquiring an existing entity instead of incorporating a new legal entity.

What it costs and how it is funded

• Purchase price: USD 1 (US Dollar One).
• Associated legal fee: approx. USD 8,000 (US Dollar Eight Thousand).
• The target will be further capitalised, in tranches as per liquidity requirements, with share capital of PYG 68,430 million (approx. EUR 10 million).
• Nature of consideration: cash.

Who will hold the entity

• Motherson Global Investments B.V. will hold 99% and PKC Wiring Systems OY will hold 1% — both are indirect wholly-owned subsidiaries of the company — together taking 100% of the equity share capital.

Timeline and approvals

• The acquisition is expected to be completed within Q3 of FY 2026-27.
• No governmental or regulatory approval is required for the acquisition other than customary registrations in Paraguay.
• The acquisition does not fall within related party transactions, and the promoter / promoter group / group companies have no interest in the entity being acquired.

What this means for a retail reader

• This is an expansion step in the company's existing wiring harness business, adding a manufacturing base in South America rather than buying a running business — the entity being acquired has nil turnover and no operations.
• The upfront outlay is very small, but the real commitment is the planned capitalisation of up to PYG 68,430 million (approx. EUR 10 million), to be infused in tranches based on liquidity needs.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev