M&M to buy 13.5% in Spain's CIE Automotive for 96.24 mn euros

MahindraMahindra & Mahindra has agreed to buy 13.5% stake in Spain's auto components maker for $125.72 million. (Reuters)

Farm equipment-to-aerospace conglomerate Mahindra & Mahindra (M&M) today announced a multi-structured deal under which it will pick up 13.5 per cent stake in Spain's auto component maker CIE Automotive for 96.24 million euros (nearly Rs 740 crore).

In turn, M&M will sell stakes in its three group firms for Rs 673.68 crore to Participaciones Internacionales Autometal Dos, SL, CIE Automotive SA and Autometal, SA.

In a filing to the BSE, M&M said a Committee of Directors of the Company at a meeting held today approved entering into of a share purchase agreement with Participaciones Internacionales Autometal Dos, SL, CIE Automotive SA and Autometal, SA.

Under the agreement, M&M said it will invest 96.24 million euros (nearly Rs 740 crore) through its subsidiary/ies for a stake of 13.5 per cent in CIE Automotive SA at a price of euro 6 per share.

On the other hand, 4.8 crore equity shares of Rs 10 each aggregating 52.65 per cent of equity share capital of Mahindra Forgings Ltd, a listed subsidiary of M&M, will be sold for an aggregate consideration of Rs 393.08 crore, at a rate of Rs 81 per share.

Further, 3.03 crore equity shares of Rs 10 each aggregating 64.96 per cent stake in Mahindra Hinoday Industries Ltd, is also being offloaded for Rs 268.96 crore at a rate of Rs 88.90 apiece.

Likewise, under the agreement, 13.41 lakh equity shares of Rs 10 each aggregating 30.38 per cent stake in Mahindra Composites Ltd will be sold for a consideration Rs 10.01 crore at a rate of Rs 74.70 apiece.

Besides, the Board of Directors of Mahindra Holdings Ltd, a wholly-owned subsidiary M&M has also approved entering into of a share purchase deal with Participaciones Internacionales Autometal Dos, SL, CIE Automotive SA and Autometal, SA for sale of 2.2 lakh equity shares of Rs 10 each aggregating to

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