Mahindra and Mahindra (M&M), post market hours on Friday, 17 January 2020, informed Mahindra First Choice Wheels (MFCWL), a board controlled subsidiary of Mahindra Holdings (MHL), which is, in turn a wholly owned subsidiary of Mahindra and Mahindra, signed a share purchase agreement for acquiring up to 100% of the paid up equity share capital of Fifth Gear Ventures (FGVL), for a consideration not exceeding Rs 30.45 crore to be discharged by MFCWL by way of cash and issue of shares of MFCWL, subject to customary closing adjustments. An amount not exceeding Rs. 16.44 crore will be discharged by cash. An amount not exceeding Rs 14.01 crore will be discharged through issue of equity shares of MFCWL aggregating approximately 0.75% of MFCWL's fully diluted share capital Upon acquisition, FGVL would become a subsidiary of MFCWL and in turn of MHL and of M&M. MFCWL is acquiring FGVL with the objective of expanding its presence in the digital automotive space and seamlessly integrating the online and offline user experience. M&M rose 0.28% to Rs 569.00 yesterday, 17 January 2020. Fifth Gear Ventures is engaged in the business of maintaining and operating the website www.carandbike.com, an e-commerce market platform that facilitates sale and purchase of new and used vehicles and keeps its users updated with the latest information and reviews from automotive industry. M&M operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts. Powered by Capital Market - Live News |