Mahindra & Mahindra on Thursday said it will acquire additional 9.12 per cent stake for about ₹12 crore in its associate firm Carnot Technologies Pvt Ltd, which provides products and services related to internet connected devices for monitoring performance of vehicles.
In a regulatory filing, M&M said it has signed a share purchase agreement for purchase of additional 1,825 equity shares, 4,480 seed compulsory convertible cumulative participating preference shares and 589 Series A compulsory convertible cumulative participating preference shares of Carnot Technologies from its existing shareholders through secondary purchase for a total of about ₹9 crore.
Moreover, the company said it has also inked a share subscription and shareholders agreement for subscription of 2,298 Series B compulsory convertible cumulative participating preference shares of Carnot through primary infusion of approximately ₹3 crore.
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The consideration will be paid in cash, it added.
The company holds about 6.48 per cent of the equity share capital of Carnot, and post completion of the above transaction, it will hold approximately 15.60 per cent, the filing added.
"Carnot is expected to support company's strategy by developing information technology solutions for its products, customers and businesses," M&M said, adding the transaction is expected to be completed on or before September 30, 2020.
Carnot Technologies clocked turnover of ₹17.3 crore in FY20, ₹3.3 crore in FY19 and ₹2.4 crore in FY18, the filing said.
This story has been published from a wire agency feed without modifications to the text.