Shares of Mahindra & Mahindra and its group stocks such as Mahindra Forgings and Mahindra Components will see positive momentum, as the group announced stake deal with Spain’s CIE Automotive S.A. As part of the deal, CIE Automotive, through its Brazilian subsidiary, will acquire stake in three Mahindra Group companies, two of which are listed entities. As it triggered an open offer, Spanish company came out with open offer for Mahindra Forgings Ltd (at Rs 81 a share) and Mahindra Composites Ltd (at Rs 74.7/share). The stake sales (including Mahindra Hinoday Industries, an unlisted entity) will help M&M Mahindra in acquiring 13.5 per cent stake in CIE Automotive for about Rs 740 crore. After the open offer goes through, M&M will merge forging businesses into a single entity, called Mahindra Forgings, which will also include three CIE Automotive companies, two in Spain and one in Lithuania.
M&M, group stocks to remain in top gear
June 16, 2013: