Mahindra & Mahindra
Mahindra & Mahindra on Friday said it would increase its stake in Meru, a taxi service, to 100 percent.
New Delhi. Mahindra & Mahindra on Friday said it would increase its stake in Meru, a taxi service, to 100 percent. For this, the company has entered into an agreement with Meru shareholders. Mahindra & Mahindra said in a statement that it has acquired Meru Travels Pvt. (Meru) has an agreement with the shareholders. This agreement is about the acquisition of their stake in the company. According to the company, it will buy 44.14 percent stake from private equity investor True North and others for Rs 76.03 crore. While the founders will buy 12.66 percent stake from Neeraj Gupta and Farhat Gupta for Rs 21.63 crore. Mahindra & Mahindra will increase its stake in Meru to 100 per cent from the existing 43.20 per cent with this deal. The company said that the share purchase agreement also envisages that 30,000 held by an existing shareholder would be redeemed at a face value of Rs 10 for which a total of Rs 3,00,000 would be given under a fresh issue on rights basis. M&M further said that Rs 21.63 crore will be given to buy 12.66 percent paid up equity share capital owned by Neeraj Gupta and Farhat Gupta in Meru for which a share purchase agreement will be created. The company further said that Mahindra & Mahindra’s shareholding in Meru will increase from 43.20 per cent to 100 per cent as the company acquires Meru shares from shareholders and subscribes by Meru to the OCRPS to redeem the rights issue.