 "M&M hikes stake in Ssangyong Motor to 74.65%, picks shares worth Rs 316 cr")
Homegrown auto major Mahindra & Mahindra (M&M) Wednesday said it has increased stake in its South Korean arm Ssangyong Motor Company to 74.65 per cent with the subscription of additional shares worth Rs 316.5 crore.
In response to the offer of shares made by Ssangyong Motor Company (SYMC), the company has agreed to subscribe to 1,18,90,606 equity shares of SYMC, M&M said in a regulatory filing.
The subscription has been done at a price of KRW (South Korean won) 4,205 per equity share aggregating KRW 50 billion, equivalent to around Rs 316.5 crore, it added.
"Pursuant to the above, the shareholding of the company (M&M) in SYMC would increase from 72.46 per cent to 74.65 per cent," M&M said.
The transaction is expected to be completed by February 24, it said.
In August 2010, M&M had first signed an agreement to acquire the then ailing SYMC and completed the acquisition with 70 per cent stake for USD 463 million in March 2011.
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Since then, it had gradually increased its stake to 72.46 per cent before the latest transaction.
In 2017, the South Korean automaker had increased its consolidated revenue to KRW 3,495 billion (Rs 20,901 crore) from KRW 3,390 billion (Rs 19,273 crore) in 2015, M&M said.