New Delhi: Mahindra & Mahindra said on Monday it has inked a share subscription agreement with its Finland-based associate firm Sampo Rosenlew to increase its stake to 49.04 per cent from the existing 35 percent for Rs 37.74 crore.
"The company has signed a Share Subscription Agreement with Sampo Rosenlew Oy, Finland, an Associate of the Company ("Sampo") and has agreed to subscribe to 822 equity shares and 192 compulsorily convertible preference shares. Pursuant to this, the voting rights of the Company in Sampo would increase from 35 percent to up to 49.04 percent," a BSE filing said.
According to statement total acquisition cost is Euro 46,59,534 (equivalent to around Rs 37.74 crore at the foreign exchange rate of Rs 81 per Euro).
It will acquire 822 equity shares at Euro 3,333 per share and 192 CCPS at Euro 9,999 per CCPS. The acquisition of share would be completed in four weeks.
The Sampo was founded in 1853 and is based out of Pori, Finland. Sampo is a manufacturer of combine harvesters and forest machinery with market presence in Europe, CIS and Algeria.
Sampo is a European combine harvester company, well-known for mid-sized combine harvesters in the markets of Europe, Eurasian countries and North Africa and is also a joint venture partner for combine harvesters in Algeria.
Together with its existing strategy in the core markets, Sampo is developing a new range of combine harvesters for developing markets and for specialty crops. The Company and Sampo will jointly focus on the combine & specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America.
The Sampo had a total revenue of Euro 52 million during the period October, 2017 to September, 2018, it added.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Dec 18, 2018 09:44:04 IST