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NEW DELHI: Mahindra & Mahindra Ltd on Saturday said it has entered into an agreement to acquire almost 59% stake in heavy-vehicle maker SML Isuzu (SML) at Rs 650 per share, which will entail an outlay of Rs 555 crore.
As part of the transaction, M&M would acquire the entire stake of nearly 44% held by Sumitomo Corporation, promoter of SML, and separately also acquire a 15% stake held by Isuzu Motors , public shareholder of SML.
M&M would launch a mandatory open offer to acquire up to 26% stake from public shareholders of SML in accordance with SEBI regulations. The acquisition will double market share to 6%, with a plan to increase this to 10-12% by FY31 and 20% by FY36, the firm said.
