Mahindra to acquire ~59% stake in SML Isuzu for ₹555 Crore

28 Apr 2025 , 07:43 AM

Mahindra & Mahindra Limited announced on April 26, 2025, that it has entered into a pact with SML Isuzu Limited for acquisition of a 58.96% stake. The company announced that for this transaction, the aggregate value shall be ₹555 Crore.

The manufacturer informed the bourses and shareholders that it may also make an open offer for acquiring a 26% stake from eligible shareholders of SML Isuzu Limited, as per the SEBI’s takeover guidelines.

As per the transaction terms, the business has agreed to acquire a 58.96% in SML Isuzu, out of which, 43.96% is held by Isuzu’s promoter Sumitomo Corporation, and the balance 15% shall be taken over by the Mahindra from Isuzu Motors, which is a public shareholder.

The company has agreed to acquire the stake from promoter Sumitomo at a price of ₹650 per share. This reflects a discount of 63% to SML Isuzu’s closing value on Friday.

The company announced a price of ₹1,554.60 per share for the Open Offer for public shareholders. This reflects a discount of 13% to SML Isuzu’s closing price on Friday.

Mahindra & Mahindra plans to establish a robust presence in the commercial vehicle segment exceeding 3.5 tonnes. The automotive manufacturer currently holds a 3% market share in the stated segment and with this acquisition, it could be able to double it to 6%, announced the company in its filing with the bourses.

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