M&M To Form JV With Ideal Motors, Sri Lanka
Mahindra & Mahindra Limited (M&M) has agreed, to form a Joint Venture Company in Sri Lanka ("NewCo") with Ideal Motors (Sri Lanka) ("Ideal") and subscribe/acquire up to 35% of the Share capital of NewCo with the remaining proposed to be held by Ideal and/or any of its affiliates. Detailed information is annexed below:
|1||name of the target entity, details in brief such as size, turnover etc.;||The Company has agreed to, enter into a Joint Venture Agreement with Ideal Motors (Sri Lanka) ("Ideal") to form a Joint venture company in Sri Lanka ("NewCo") and subscribe/ acquire up to 35% of the Share capital of NewCo with the remaining proposed to be held by Ideal and/or any of its affiliates.Size, Turnover - Not Applicable.|
whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired?
If yes, nature of interest and details thereof and whether the same is done at "arm's length";
This is not a related party transaction for the Company.
None of the promoter/promoter group/group companies has any interest in the NewCo.
|3||industry to which the entity being acquired belongs;||Automotive Industry|
|4||objects and effects of acquisition(including but not limited to, the disclosure of reasons for the acquisition of target entity, if its business is outside the main line of business of the Company);||The NewCo will be formed for the purpose of an assembly of vehicles in Sri Lanka|
|5||brief details of any governmental or regulatory approvals required for the acquisition;||The proposed investment is subject to the requisite RBI approvals.|
|6||indicative time period for completion of the acquisition;||April 2018. ,|
|7||nature of consideration - whether cash consideration or share swap and details of the same||The consideration for subscription/ acquisition of shares, as mentioned, would be paid in cash.|
|8||cost of acquisition or the price at which the shares are acquired;||The Company's investment in the NewCo would be not more than LKR 250,000,000.|
|9||percentage of shareholding/control acquired and/or number of shares acquired;||The Company would subscribe/ acquire up to 35% of the Share capital of NewCo.|
|10||brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, the country in which the acquired entity has a presence and any other significant information (in brief);||Not Applicable as the NewCo is yet to be formed in Sri Lanka.|