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  4. M&M picks 36.63% in Meru in first tranche, gets right to appoint majority of directors

M&M picks 36.63% in Meru in first tranche, gets right to appoint majority of directors

PTI   

M&M picks 36.63% in Meru in first tranche, gets right to appoint majority of directors
Business1 min read
New Delhi, Dec 5 () Homegrown utility vehicles major Mahindra & Mahindra (M&M) on Thursday said it has completed acquisition of 36.63 per cent stake in Meru Travel Solutions in the first tranche as part of its Rs 201.5-crore deal to acquire 55 per cent shareholding in the radio taxi operator.

In September M&M had announced signing of a share subscription and shareholder agreement for subscribing up to 55 per cent of equity share capital of Meru Travel Solutions Pvt Ltd in tranches.

"...the company has today acquired 36.63 per cent of the equity share capital of Meru in the first tranche of investment, and also the right to appoint majority of the directors on the board of Meru," M&M said in a regulatory filing.

M&M said it "has invested an amount of Rs 44.71 crore (in cash consideration) for the acquisition of 36.63 per cent of the equity share capital of Meru".

Consequently, Meru has become a subsidiary of the company with effect from December, 5 2019.

Also subsidiary companies of Meru -- Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd, V-Link Fleet Solutions Pvt Ltd -- have in turn become subsidiaries of M&M, it added.

For the year ended March 31, 2019, Meru had consolidated revenue of Rs 156.6 crore, while Meru Mobility Tech had a standalone revenue of 114.6 crore.

V-Link Automotive's standalone revenue was Rs 3.3 crore and V-Link Fleet's was Rs 46.6 crore.

Meru, which was incorporated in December 2006, had clocked consolidated revenue of Rs 156.6 crore in 2018-19, Rs 189.9 crore in 2017-18 and Rs 277.2 crore in 2016-17. RKL RKL MR MR

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