New Delhi: Mahindra & Mahindra Ltd on Wednesday announced a restructuring of its farm equipment business in Turkey under which its arm, Erkunt Traktor Sanayi A.S. (Erkunt) will acquire the agriculture machinery business from another subsidiary, Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi (Hisarlar).
On the other hand, the company will exit from Hisarlar, with its wholly-owned subsidiary, Mahindra Overseas Investment Co (Mauritius) Ltd (MOICML), together with Erkunt selling their entire stake of 94.3 per cent in Hisarlar for Turkish Lira 6.6 million (around Rs 5.6 crore) to a group of Turkish individuals.
“As part of the restructuring of its subsidiaries in Turkey, Mahindra Group will exit Hisarlar’s metal fabrication business. While, Erkunt will acquire the agricultural machinery business of Hisarlar, including select related assets, intellectual property (IP), and brand use rights.” M&M said in a statement.
Mahindra Group, through Erkunt, will continue to stay invested in the core business of agricultural machinery products ranging from soil tillage to post-harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar, it added.
Commenting on the restructuring, M&M President, Farm Equipment Sector Hemant Sikka said, “Through this transaction, we have retained the core business of agricultural machinery and all the IP built over the years.”
He further said, “This makes Erkunt Traktor a full range farm equipment OEM, ensuring that our dealers in Turkey and customers in Europe and other international markets continue to be serviced.”
In a regulatory filing, M&M said following the sale of a stake in Hisarlar, the shareholding of MOICML and Erkunt would come down to nil, and Hisarlar would cease to be a subsidiary of MOICML and consequently of the company.
The remaining 5.7 per cent of the equity share capital of Hisarlar is held by European Bank for Reconstruction and Development (EBRD), an institutional investor.
“MOICML shall extend its best efforts to purchase the stake held by EBRD and sell it to the buyer in an independent transaction and agreement for sale,” M&M said. (AGENCIES)
Follow our WhatsApp channel
