Mahindra & Mahindra Ltd increases stake in Sampo Rosenlew Oy, Finland

Mahindra & Mahindra Ltd has today subscribed to 1,050 Equity Shares of Sampo Rosenlew Oy, Finland, a Subsidiary of the Company ("Sampo"). Pursuant to the said transaction, the voting rights of the Company in Sampo would increase from 74.97% to upto 79.13%.

The total acquisition cost is Euro 34,99,650 (1,050 Equity Shares at Euro 3,333 per share) [equivalent to around Rs. 31.15 crores at the foreign exchange rate of Rs. 89 per Euro].

Sampo Rosenlew Oy, Finland, a Subsidiary of the Company ("Sampo") is a leading player in combine harvesters' market.

Sampo is a European combine harvester company, well-known for mid-sized combine harvesters in the markets of Europe, Eurasian countries and North Africa and is also a joint venture partner for combine harvesters in Algeria.

Together with its existing strategy in the core markets, Sampo is developing a new range of combine harvesters for developing markets and for specialty crops. The Company and Sampo will jointly focus on the combine & specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America.

Sampo had a total revenue of Euro 49 million for the year ended 31st March, 2020.

Mahindra's scale in tractors and Sampo's expertise in combine harvesters allows both companies to offer a broader product portfolio to address the needs of farmers in various countries. In India, the combine harvester market is currently much smaller than tractors but is growing rapidly with the penetration of mechanisation. It is imperative that the Company builds a strong position in this product line for India and other export markets.

Sampo is the global engineering center for the Company's harvester product line. Also, various new product development programmes are underway with both the engineering teams working jointly.

Shares of MAHINDRA & MAHINDRA LTD. was last trading in BSE at Rs.753 as compared to the previous close of Rs. 753.95. The total number of shares traded during the day was 86937 in over 1888 trades.

The stock hit an intraday high of Rs. 762.8 and intraday low of 750.5. The net turnover during the day was Rs. 65783104.

Source : Equity Bulls

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