Mahindra & Mahindra (M&M) announced on Monday that it has increased the stake in Finnish branch Sampo Rosenlew Oy to 100% with the acquisition of shares for more than Rs 35 crore.
With the announcement, the tractor maker’s stock rose by 1.5% to Rs 1,180.15 on BSE. The stock is 1% off its 52-week high of Rs 1191.9.
The company said it signed an option-based share purchase agreement on Monday to acquire 1,317 shares of Sampo Rosenlew Oy, following the exercise of a call option by it on the other shareholder of Sampo.
Subsequently, M&M’s substantial stake and voting rights in Sampo would increase from 79.13% to 100% of Sampo’s share capital and it would become a wholly owned subsidiary of the company, he added. .
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The consideration will be paid in cash and the 1,317 shares of Sampo are acquired at a price of 3,333 euros per share totaling 43,89,561 euros (Rs 35.57 crore), according to the filing.
In December 2020, the company increased its stake in combine harvester maker Sampo Rosenlew Oy to 79.13% with the acquisition of an additional 1,050 shares for Rs 31.15 crore.
Sampo is known for its mid-size combine harvesters in the markets, especially in Europe and North Africa. It is also a partner in the M&M joint venture for combine harvesters in Algeria.
M&M said that together with Sampo, they will jointly focus on the combine harvester and specialist combine business in Asia, Africa, Eurasian Economic Union countries and Latin America.
The company’s size in tractors and Sampo’s expertise in combine harvesters both allow it to offer a broader product portfolio to meet the needs of farmers in various countries, M&M said.
Sampo recorded revenue of 52 million euros in the financial year ended March 31, 2022, according to the filing.
First post: STI