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Mahindra & Mahindra to sell 80% stake of MWTESL

14 Sep 2022 Evaluate

Mahindra & Mahindra (M&M) has entered into a Share Purchase Agreement and a Shareholders Agreement with Blue Planet Environmental Solutions (BPES).

As part of the agreement, the company has agreed to acquire the balance 12.61% of the paid-up equity share capital of Mahindra Waste To Energy Solutions (MWTESL) from present and ex-employees of the Company, in one or more tranches. The Company presently holds 87.39% of the Paid Up Equity Share Capital of Mahindra Waste To Energy Solutions, a subsidiary of the Company.

Consequently, post-acquisition of the above stake, it has agreed to sell 80% of the Paid-Up Equity Share Capital of MWTESL comprising of 2,40,00,000 Equity Shares to BPES or any of its Affiliates (Buyer), in one or more tranches at a price of Rs. 8.44 (rounded off) per share (First Closing) for an aggregate consideration of Rs. 20.25 crore.

The company will have a right of “put option” to sell the balance 20% of the paid-up equity share capital of MWTESL and BPES will have the right of “call option”, after 24 months from First Closing, at a price not less than Rs. 8.44 per share, subject to certain closing conditions (Second Closing). The Sale price agreed for this tranche shall be higher of Rs. 8.44 (rounded off) or the fair value per share of MWTESL multiplied by the number of shares being sold, as adjusted upwards in the event of occurrence of certain specified events.

M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.

Mahindra & Mahindra Share Price

3199.35 -22.00 (-0.68%)
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