Hero MotoCorp Acquires EBR's Consultancy Resources

As per the Settlement Agreement, HMCL Americas Inc. has agreed to acquire the ownership of certain tangible and intangible assets of EBR for a consideration of US$ 2.8 million. While tangible assets would mean inventory and possibly even the finished products, intangible assets indicate intelligence, research and technology solutions. This will also aid Hero in development of future products. Furthermore, the projects that EBR and Hero were working on collectively will be acquired by Hero in their entirety.

It was back in 2013 that Hero acquired 49.2 per cent stake in EBR for about Rs. 148 crore and had plans to market its products in the US through the EBR network. However, EBR Inc. and EBR Inc.'s subsidiary EBR LLC had ceased their operations with effect from April 15, 2015 and had filed for bankruptcy.

The Settlement Agreement is contingent upon the approval by the Circuit Court, and the approval of the board of directors of Hero MotoCorp.

The performance of the Settlement Agreement will help Hero MotoCorp's in-house research and development teams to accelerate development of certain consulting projects, including the projects EBR was executing for the Company at the time of filing of bankruptcy.

The notice of motion with regards to the Settlement Agreement will be filed in the Circuit Court in the next few days.