Mahindra & Mahindra (M&M) on Monday revised the selling price of its 22.82 percent stake in Sanyo Special Steel Manufacturing India Private Limited (SSSMIPL) to Rs 455 per share from Rs 610 per share. M&M is selling its entire stake in Sanyo Special Steel Manufacturing India to Japan-based Sanyo Special Steel Co.

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Post sale of the stakes, the company will get Rs 158.12 crore from this stake sale of SSSMIPL and the transaction is expected to be completed by May 30, 2023.

"Post exercise of the put option by the company, the parties have revisited the price in terms of the shareholders’ agreement and arrived at a price of Rs 455 per equity share." M&M said in a regulatory filing.

"Accordingly, the parties have today signed the Share Purchase Agreement for sale of 34,75,264 Equity Shares of Rs 10 each of SSSMIPL by the Company to Sanyo at a price of Rs 455 per Equity Share," it further added.

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Earlier on April 16, 2023, Automaker Mahindra & Mahindra said that it has agreed to sell its entire stake in SSSMIPL’ to Sanyo Special Steel Co., Ltd (Sanyo) at a price of Rs 610 per equity share pursuant to exercise of a Put Option available to the Company on Sanyo under the Shareholders’ Agreement.

The company said that consequent to the sale, the Company’s holding in SSSMIPL would become NIL and SSSMIPL would cease to be an Associate of the Company. Following the sale, the shareholding of Sanyo in SSSMIPL will increase from 57.19 percent to 80.00 percent.

The turnover of Sanyo Special Steel Manufacturing India Private Limited for the year ended as on March 31, 2022, was Rs 1,190.85 crores constituting 1.32 percent of the consolidated turnover of the Company. Its net worth for the same period was Rs 91.55 crores constituting 0.19 percent of the consolidated net worth of the Company.

Shares of Mahindra & Mahindra settled at Rs 1,206.90 per share, down 0.48 percent, today, April 24, 2023.

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