Kinetic Engineering sells remaining 20% stake in Mahindra Two Wheelers
Samena Capital, a private equity investment group, bought the stake
Mumbai: Kinetic Engineering Ltd has sold its remaining 20% stake in Mahindra Two Wheelers Ltd to Samena Capital, a private equity investment group focused on Asia and West Asia, the companies said in a joint statement on Monday.
Kinetic will receive about ₹ 182 crore for the stake. After certain committed payments including repayments of non-convertible debentures and cost of financing, net proceeds would amount to about ₹ 109 crore, the companies said.
Kinetic Group had acquired the stake in November 2008 when its group company Kinetic Motor Co. Ltd (KMCL) sold its two-wheeler business assets to Mahindra Two Wheelers for cash as well as a 20% equity stake. Subsequently, KMCL was merged with Kinetic Engineering in 2012; as a result, the stake was transferred to the latter.
“We are divesting our stake in MTWL, in order to invest in meeting the requirements of our automotive systems business in KEL," said Sulajja Firodia Motwani, vice chairperson of Kinetic Engineering.
“We will utilize the proceeds to meet various obligations of this business including working capital and FCCB (foreign currency convertible bond)/debt repayment requirements to strengthen our balance sheet," said Motwani.
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