Mahindra & Mahindra has inked a share subscription agreement with its Finland based associate firm- Sampo Rosenlew to increase its stake from the existing 49.04 per cent to 49.14 per cent. The company has subscribed to 288 Compulsorily Convertible Preference Shares of Sampo Rosenlew Oy, Finland, an Associate of the Sampo Group. Sampo has been developing a new range of combine harvesters for developing markets and for specialty crops which will also be beneficial for Mahindra's farm business.
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Earlier in December 2018, Mahindra had increased its stake in Sampo Rosenlew from 35 per cent to 49.04 per cent with an investment of ₹ 37.74 crores. The company had subscribed to 822 equity shares and 192 compulsorily convertible preference shares. According to statement files in BSE earlier, total acquisition cost was 46,59,534 Euros which was then equivalent to around Rs 37.74 crore at the foreign exchange rate of Rs 81 per Euro. All 822 equity shares were acquired at 3,333 Euros per share and 192 CCPS at 9,999 Euros per CCPS.
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Sampo is a European combine harvester company which manufactures mid-sized combine harvesters in the markets of Europe, Eurasian countries and North Africa and also has a joint venture for combine harvesters in Algeria. Mahindra and Sampo are together focusing on the combine and specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America.
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