M&M sells 14 per cent Swaraj Mazda stake to Sumitomo for Rs40 crore
30 December 2008
Utility vehicles major Mahindra & Mahindra has sold its 14.04 per cent stake in commercial vehicle maker Swaraj Mazda to Sumitomo Corporation of Japan for Rs40.03 crore.
Sumitomo has agreed to acquire the 14.72 lakh shares held in Swaraj Mazda by Punjab Tractors, a group company of M&M, at Rs272 per share through inter-se transfer, M&M said in a regulatory filing with stock exchanges.
With the acquisition, Sumitomo's stake in Swaraj Mazda will go up from 39.39 per cent to 53.52 per cent, giving it control of the firm. The stake sale will be completed by 6 January.
M&M had acquired the 14.04 per cent stake in Swaraj Mazda, after the acquisition of Punjab Tractors Ltd.
M&M had acquired 64.64 per cent stake in Punjab Tractors in March last year for over Rs1,400 crore. It bought off private equity firm Actis' 43.3 per cent stake in the company and followed it up with an open offer for 20 per cent.
In October M&M got shareholders' approval to amalgamate PTL with itself.