Mahindra & Mahindra Ltd to sell Mahindra Waste To Energy Solutions Ltd

Mahindra & Mahindra Ltd presently holds 87.39% of the Paid Up Equity Share Capital of Mahindra Waste To Energy Solutions Limited, a subsidiary of the Company ("MWTESL").

The Company has today entered into a Share Purchase Agreement and a Shareholders Agreement with Blue Planet Environmental Solutions Pte Ltd. ("BPES") and as part of the terms of the aforesaid Agreements agreed to the following:

- To acquire the balance 12.61% of the Paid-Up Equity Share Capital of MWTESL from present and ex-employees of the Company, in one or more tranches; and

Post the above Acquisition:

- Sale of 80% of the Paid-Up Equity Share Capital of MWTESL comprising of 2,40,00,000 Equity Shares to BPES or any of its Affiliates ("Buyer"), in one or more tranches at a price of Rs. 8.44 (rounded off) per share ("First Closing") for an aggregate consideration of Rs. 20.25 crores;

- The Company will have a right of "put option" to sell the balance 20% of the Paid-Up Equity Share Capital of MWTESL and BPES will have the right of "call option", after 24 months from First Closing, at a price not less than Rs. 8.44 per share, subject to certain closing conditions ("Second Closing"). The Sale price agreed for this tranche shall be higher of Rs. 8.44 (rounded off) or the fair value per share of MWTESL multiplied by the number of shares being sold, as adjusted upwards in the event of occurrence of certain specified events.

Upon acquisition of the entire stake mentioned at (1) by the Company, MWTESL will become a wholly owned subsidiary of the Company, and thereafter, following the sale of its stake at (2)(i) above, MWTESL would cease to be a subsidiary of the Company.

Mahindra Waste To Energy Solutions Limited, a subsidiary of the Company ("MWTESL") is engaged in conversion of Municipal Waste to Bio-CNG through Bio-Methanation.

For the year ended 31st March, 2022, the turnover of MWTESL was INR 7.63 crores.

Source : Equity Bulls

Keywords

MahindraandMahindra MahindraWasteToEnergySolutions BluePlanetEnvironmentalSolutions StakeSale