New Delhi: Suzuki Motor Corp of Japan on May 30 gained control of the biggest automaker in India, Maruti Udyog Ltd (MUL).

Osamu Suzuki, Chairman of Suzuki Motor Corp, presented a cheque of Rs 1,000 crore to Suresh Prabhu, Minister for Power and Minister-in-charge of Heavy Industries, to gain control of MUL.

The payment of 'control premium' is the first step in the convoluted process of privatising the automaker, which holds 59 per cent market share.

Suzuki paid Rs 400 crore to buy 1.2 million newly issued Maruti shares for Rs 3,280 per share, that would take its shareholding to 54.2 per cent and dilute the government's holding to 45.54 per cent from present 49.7 per cent.

In the second step of disinvestment, the government would offload a 20 per cent stake through an Initial Public Offering (IPO) of shares this fiscal to exit the venture entirely by March 2004.

PTI