Aberdeen to hold on Hero Honda stake

Dec 7 (Reuters) - Aberdeen Asset Management said on Tuesday it will hold on to its minority stake in India's Hero Honda despite reports that Honda is pulling out of the joint venture.

"We have decided to stay with the company because we know the company so well that we understand where the value is," Aberdeen strategist Peter Elston told Reuters. "If anything the company is perhaps more interesting.

"We are very comfortable with the stock even once the ties with Honda are ended because we think that the value is in the distribution, not in the brand frankly."

According to Thomson Reuters data, Aberdeen holds around 5 percent in Hero Honda.

Honda Motor Co. reached a basic agreement this week to dissolve its partnership in Hero Honda, the Nikkei business daily reported.

Honda will sell its entire stake in the motorcycle maker to the Hero Group's founding family and investment funds by as early as March, the report added.