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Mahindra & Mahindra to divest 80% stake in Mahindra Waste for Rs20.25 crore

The transaction will take place in one or more tranches at a price of Rs8.44 per share.

September 14, 2022 10:26 IST | India Infoline News Service
Mahindra & Mahindra Limited informed that it has entered into a Share Purchase Agreement and a Shareholders Agreement with Blue Planet Environmental Solutions Pte Ltd. (BPES).

As part of the agreement, the company has agreed to acquire the balance 12.61% of the paid-up equity share capital of Mahindra Waste To Energy Solutions Limited (MWTESL) from present and ex-employees of the Company, in one or more tranches.

Consequently, post-acquisition of the above stake, it has agreed to sell 80% of the paid-up equity share capital of MWTESL comprising 2,40,00,000 equity shares to BPES or any of its Affiliates.

The transaction will take place in one or more tranches at a price of Rs8.44 per share, aggregating to Rs20.25 crore.

Further, the company stated that it shall have a right of “put option” to sell the balance 20% of the paid-up equity share capital of MWTESL and BPES will have the right of “call option”, after 24 months from the first closing, at a price not less than Rs8.44 per share, subject to certain closing conditions.

MWTESL is engaged in municipal trash conversion to bio-CNG through bio-methanation.

At around 10.30 AM, Mahindra & Mahindra was trading at Rs1,306.20 per piece, up by 0.48% from its previous closing of Rs1,299.95 on the BSE. The scrip opened at Rs1,282.20 and touched intraday high and low of Rs1,309.25 and Rs1,280.15 respectively. 

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