Mahindra & Mahindra (M&M), a part of $17.8 billion Mahindra Group, has forayed into Turkey, through the acquisition of Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi (Hisarlar), a farm equipment company based in Turkey.
Under the transaction, which is expected to close by April 2017, the company will acquire a 75.1% equity stake in Hisarlar. The association will help in growing the farm equipment business in Turkey and Europe. The balance shareholding will be with European Bank for Reconstruction and Development (EBRD), 18.7%; and the founding Turker family, 6.2%. Further, as part of the transaction, Darby Converging Europe Fund III will exit its investment.
The company will invest 71 million Turkish Lira (equivalent to around $19 million at an exchange rate of 3.80 Turkish Lira per USD) in Hisarlar as fresh equity infusion into the company, which will give M&M a 75.1% equity stake. Mahindra & Mahindra will have majority in the board and control the management of Hisarlar, post its investment into the company. As part of the transaction, EBRD is increasing its shareholding to 18.7%, and will be entitled to nominate a Board Director, with the founding Turker family retaining a 6.2% stake.
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Mahindra & Mahindra | 2055.00 |
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Hindustan Motors | 28.70 |
Suzuki (India) | |
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