|
| Exchange Disseminated Time | Kinetic Engineering Ltd has informed BSE that the Company on February 24, 2014, has announced that it has sold its entire shareholding in Mahindra Two Wheelers Limited (MTWL) to Samena Capital, a Private Equity Investment Group focused on Asia and Middle east.
Kinetic group had originally acquired stake in MTWL over 5 years ago, in November 2008, when its group Company, Kinetic Motor Company Limited (KMCL), sold its two wheeler business assets to MTWL, for cash as well as a 20% strategic equity stake. Subsequently, KMCL was merged with KEL in year 2012, and thus, the stake had been transferred to KEL.
The stake sale will fetch approximately Rs. 1821 million to KEL, and after certain committed payments towards NCD repayments and cost of financing etc, KEL expects to receive net proceeds of around Rs. 1098 million. KEL will utilize the net proceeds to meet various obligations of its business including working capital and substantially towards FCCB/debt repayment obligations to strengthen its balance sheet.
KEL has recently entered into two technical alliances, with Magna Steyr Limited and with TGB of Taiwan and intends to build its business with a focus on Transmission Systems through these tie ups. |
|
|