Mahindra & Mahindra terminates share purchase pact with CLP India

Mahindra & Mahindra on Friday said it has terminated share purchase agreement with CLP India to sell the entire stake held by its step down arm Mahindra Renewables in Neo Solren Pvt Ltd (NSPL) for ₹104.67 crore.

In February this year, M&M had announced that its wholly-owned arm Mahindra Renewables would sell its entire stake in three subsidiaries to CLP India, a part of Hong Kong-based CLP Group, for nearly ₹340 crore.

“Given that the closing has not occurred within the agreed timeframes, the share purchase agreement which was entered into for the sale of 93,15,000 equity shares of ₹10 each of NSPL held by MRPL to CLP India stands terminated on 10th September 2020,” M&M said in a regulatory filing.

Mahindra Renewables Pvt Ltd (MRPL) had agreed to sell its entire stake aggregating 100 per cent of the paid-up equity share capital in Cleansolar Renewable Energy Pvt Ltd (CREPL), Divine Solren Pvt Ltd (DSPL) and Neo Solren Pvt Ltd (NSPL), wholly-owned subsidiaries of MRPL, to CLP India Pvt Ltd (CLP).

As per the agreement CLP was to buy 93,15,000 equity shares of ₹10 each of NSPL at a price of ₹112.37 per share aggregating to ₹104.67 crore.

The closure of the transaction, originally expected to be completed by May 31, 2020, was extended till September in view of difficulties due to the coronavirus pandemic.

The filing, however, did not mention anything about the other two transactions.