M&M to offload entire stake worth ₹212 crore in Mahindra Sanyo Special Steel
Premium- The equity shares sale will be carried at a floor price of ₹610 per equity share for a consideration of ₹211.99 crore.
Auto giant, Mahindra & Mahindra (M&M) on Sunday agreed to divest its stakes in Mahindra Sanyo Special Steel (MSSSPL) to Japan-based Sanyo Special Steel for a consideration of nearly ₹212 crore.
In its regulatory filing, M&M said that the company has agreed to sell 34,75,264 equity shares of ₹10 each held by the company in Mahindra Sanyo Special Steel constituting 22.81% of the Paid-up Capital to Sanyo Special Steel pursuant to the exercise of a Put Option available to the Company on Sanyo under the Shareholders’ Agreement.
The equity shares sale will be carried at a floor price of ₹610 per equity share for a consideration of ₹211.99 crore.
The transaction is expected to complete around July 2022.
Japan-based Sanyo had consolidated sales of 210,722 million yen in FY 2021. Following the sale, the shareholding of Sanyo in MSSSPL will increase from 57.19% to 80%.
On the completion of the transaction, M&M's shareholding in MSSSPL will be nil.
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As of March 2021, the turnover of MSSSPL stood at ₹834.43 crore constituting 1.12% of the consolidated turnover of M&M. The net worth of MSSSPL stood at Rs112.43 crore as of March 2021 - constituting 0.27% of the consolidated net worth of the Company.