M&M sells 21% stake in Mahindra Sanyo

Our Bureau

Mumbai, February 9

Automotive major Mahindra & Mahindra (M&M) has agreed to sell its 22 per cent stake in Mahindra Sanyo Special Steel Pvt Ltd (MSSSPL) to joint venture partner Sanyo Special Steel Co Ltd for ₹146.32 crore. M&M is selling the stake at ₹555 a share.

The Indian company will sell 2.64 million shares to Sanyo.

Following the sale, M&M’s shareholding in the JV firm will fall to 29 per cent and MSSSPL will cease to be its subsidiary, while that of Sanyo will increase to 51 per cent, M&M said in a regulatory filing.

Prior to the deal, M&M held a 51 per cent stake in MSSSPL and Sanyo 29 per cent, while the remaining 20 per cent was held by Mitsui & Co. MSSSPL had a turnover of ₹918 crore and a net worth of ₹178.86 crore as of March 31, 2017.

The transaction is expected to be completed by March 31, upon receipt of requisite approvals, M&M added. Sanyo Special Steel is M&M’s partner for the speciality steel business, and the Japanese firm had posted a consolidated sales of 138,680 million yen in FY 2016.

Mahindra Sanyo, formerly known as Navyug Special Steel, is manufacturer and supplier of special steels, alloys and ring products.

M&M scrip fell 0.50 per cent to ₹749.95 on a weak BSE, which ended down 1.18 per cent on Friday.

Published on February 09, 2018
TOPICS
restructuring and recapitalisation
merger, acquisition and takeover
Mahindra & Mahindra Ltd

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