Mahindra & Mahindra (M&M) is understood to be considering a $258 million (300 billion won) bid for its stake in Ssangyong Motor Company (SYMC) made by HAAH Automotive Holdings Inc, a US-based automobile distributor. Mahindra holds almost 75 per cent in the South Korean auto maker.
In August this year, M&M decided to reduce its stake in SYMC to less than 50 per cent even as the company indicated that it was open to the possibility of ceding control over SYMC in full or part.
This was to induct potential investors into SYMC or to otherwise meet its funding requirements through other sources.
According to M&M’s annual report for 2019-20, as of March 31 2020 its investments in SYMC stood at Rs 2,450 crore, while its ownership interest was at 74.65 per cent.
Shares of M&M on Monday settled almost five per cent lower on the bourses.
On the BSE, it ended at Rs 622.35 — a drop of 32.10, or 4.90 per cent, over its last close.
M&M was recently in news when the company said that it has terminated share purchase agreement with CLP India to sell the entire stake held by its step down arm Mahindra Renewables in Neo Solren Pvt Ltd (NSPL) for Rs 104.67 crore.
