August 8, 2018 / 7:38 PM / 2 months ago

Hastor tenders Grammer stake to Ningbo Jifeng, ending power struggle

FRANKFURT (Reuters) - Bosnian investor Hastor has tendered its 19 percent stake in German car parts maker Grammer (GMMG.DE) to a Chinese peer, ending a two-year power struggle at the firm.

The Wang family, which holds a majority stake in Chinese car parts maker Ningbo Jifeng (603997.SS), said last month that its revised takeover for Grammer had been successful with 37.7 percent of the shares tendered.

Hastor’s Cascade vehicle, which initially wanted to take over Grammer itself, said in a statement on Wednesday that given the Chinese firm’s stake in Grammer it did not see a possibility to achieve its original strategic goals at the firm.

Hastor had invested in Grammer in 2016, but Grammer’s management, which had feared that its business would suffer if the Bosnians increased their influence, had welcomed Ningbo Jifeng as a white knight.

Grammer’s management warned in May last year that the growing influence of Bosnia’s Hastor family had led carmakers to pare back business.

The Hastor family also owns auto supplier Prevent, which got into a dispute with Volkswagen (VOWG_p.DE) in 2016 resulting in stoppages at VW’s Golf assembly line. The family had demanded seats on Grammer’s supervisory board.

Despite not reaching its strategic goals, the Hastor family has seen Grammer’s share price roughly double since it took its stake in the company.

Reporting by Arno Schuetze; Editing by Jan Harvey

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