Thailand’s AAPICO Hitech Pcl has received its board’s approval to invest $100 million in UK-based auto parts maker Sakthi Global Auto Holdings (SGAH), the firm said on Thursday.

AAPICO will spend $50 million in purchasing 2,510 newly issued ordinary shares, equivalent to 25.10 per cent of SGAH. The other $50 million will be a synthetic convertible loan to SGAH with an interest rate of 20 per cent per annum.

However, SGAH needs to complete an internal group restructuring prior to the investment by the end of Q2 2017.

After restructuring, SGAH will consist of manufacturers of automotive components to serve original equipment manufacturers such as General Motors, Continental AG, Maruti Suzuki India Ltd, IIjin Automotive Private Ltd and Ford.

Yeap Swee Chuan, president and CEO of AAPICO, said the company expects the transaction to help it become a global auto parts maker with a new customer base and international distribution channels as well as reduce the risk of depending heavily on the Thai market.

“We will forge a strategic partnership with SGAH and its subsidiaries in India, Portugal, the United States and China to grow our business in the global market,” he was quoted as saying in the filing.

AAPICO will use internal cash of $25 million to fund this investment and the rest $75 million will be credit facilities from TMB Bank and Bangkok Bank with a maturity of five years

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