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The complex deal Mahindra & Mahindra entered into in June with Spain-based CIE Automotive for its automotive components business has entered a crucial phase as the open offers for M&M subsidiaries is set to begin on Friday.
Open offers for shareholders of Mahindra Forgings at Rs 81 a share (for 2.45 crore shares) and Mahindra Composites at Rs 75.7 a share (for 11.65 lakh shares) from Participaciones Internacionales Autometal Dos, S.L., along with Autometal S.A, and CIE Automotive S.A, will be open between September 27 and October 21.
In a multi-layered deal announced in June, CIE, through its Brazilian-listed subsidiary, Autometal, will invest in the component businesses of M&M’s Systech Sector. These include listed companies Mahindra Forgings, Mahindra Ugine Steel and Mahindra Composites and unlisted Mahindra Hinoday and Mahindra Gears.
Mahindra & Mahindra will take a 13.5 per cent stake in CIE Automotive for around 96.24 million euro, making it the second largest shareholder in CIE.
M&M sold stakes in three group companies for Rs 674 crore to CIE’s group company that triggered the open offers.
Also, M&M will have a 20 per cent plus stake in Mahindra CIE, depending on the response to the open offer.
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