Tech Mahindra to acquire remaining stake in two South African joint ventures for Rs30 crore

10 Aug 2022 , 09:57 AM

Tech Mahindra Limited stocks is in focus today after the announcement for acquisition of remaining shareholding in Tech Mahindra South Africa (Pty) Limited (‘Tech Mahindra SA’) and Tech Mahindra Holdco Pty Ltd both subsidiaries of the Company.

As per the filing, the company informed that it has signed an agreement to acquire 49% equity shares in Tech Mahindra South Africa (Pty) Limited and 4% equity shares in Tech Mahindra Holdco Pty Ltd.

Further, Tech Mahindra South Africa (Pty) Limited was set up as a Joint Venture company with the Company holding 51%. The turnover of the company as at March 31, 2021 is ZAR 296,963,682/-. Another company Tech Mahindra Holdco Pty Ltd was set up with the Company holding 96% stake. Being a holding company, it does not have any revenue. Furthermore, the cost of acquisition at which the share are acquired is R62,000,000 (sixty two million Rand) or about Rs29.69 crore.

Accordingly, the partner in the JV viz Falcorp Technologies Proprietary Limited is exiting the JV and the shareholding is being acquired in terms of the JV Agreement entered into earlier, the company said.

Notably, both the entities belong to Information Technology sector.

At around 10:01 AM, Tech Mahindra Ltd was currently trading at Rs1,045.05 per share down by Rs11.8 or 1.12% from its previous closing of Rs1,056.85 per share on the BSE.