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Kinetic Engineering sells entire stake in MTWL to Samena Capital

25 Feb 2014 Evaluate

Kinetic Engineering has sold its entire shareholding in Mahindra Two Wheelers (MTWL) to Samena Capital, a Private Equity Investment Group focused on Asia and Middle east.Kinetic group had originally acquired stake in MTWL over 5 years ago, in November 2008, when its group Company, Kinetic Motor Company (KMCL), sold its two wheeler business assets to MTWL, for cash as well as a 20% strategic equity stake. Subsequently, KMCL was merged with KEL in year 2012, and thus, the stake had been transferred to KEL.

The stake sale will fetch approximately Rs 182.1 crore to KEL, and after certain committed payments towards NCD repayments and cost of financing etc, KEL expects to receive net proceeds of around Rs. 109.8 crore. KEL will utilize the net proceeds to meet various obligations of its business including working capital and substantially towards FCCB/debt repayment obligations to strengthen its balance sheet.

KEL has recently entered into two technical alliances, with Magna Steyr and with TGB of Taiwan and intends to build its business with a focus on Transmission Systems through these tie ups.

Kinetic Engineering offers engineering & manufacturing excellence and has a diverse product portfolio to manufacture all transmission components (gears, shafts, axles etc), engine components (crankshafts, cylinder heads, camshafts etc), complete gearbox & engine assemblies for auto & non auto products.

 

Kinetic Engg Share Price

216.05 -4.30 (-1.95%)
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