All Rights Reserved Finance News 2020.
Mahindra & Mahindra terminates share purchase pact with CLP India
NEW DELHI: Mahindra & Mahindra in Friday said it has over share purchase agreement with CLP India to sell your entire stake held by the step down arm Mahindra Renewables in Neo Solren Pvt Ltd (NSPL) regarding Rs 104.67 crore.
In February this year, M&M had announced that its wholly-owned arm Mahindra Renewables would certainly sell its entire share in three subsidiaries to be able to CLP India, a part of Hong Kong-based CLP Group, for almost Rs 340 crore.
“Given that the closing has not took place within this agreed timeframes, the share purchase agreement that was entered into for sale of 93,15,000 equity stocks and shares of Rs 10 every one of NSPL held by MRPL to CLP India appears terminated on 10th Sept. 2010 2020,” M&M mentioned in a regulatory filing.
Mahindra Renewables Pvt Ltd (MRPL) had agreed to sell the entire stake aggregating 100 per cent of the paid-up collateral share capital in Cleansolar Renewable Energy Pvt Limited (CREPL), Divine Solren Pvt Ltd (DSPL) and Neo Solren Pvt Ltd (NSPL), wholly-owned subsidiaries of MRPL, to be able to CLP India Pvt Limited (CLP).
As per this agreement CLP was to obtain 93,15,000 collateral shares of Rs 10 each of NSPL at a tariff of Rs 112.37 each share aggregating to Rs 104.67 crore.
The closure of the transaction, actually expected to be completed by way of May 31, 2020, seemed to be extended till September since difficulties due to the coronavirus outbreak.
The filing, however, will not mention anything about the other 2 transactions.