Mahindra & Mahindra Ltd has agreed to sell part of its stake in a joint venture with Sanyo Special Steel Co. Ltd to the Japanese partner for Rs 146.32 crore ($22.7 million).
The company will sell 2.64 million shares, or a 22% stake, in Mahindra Sanyo Special Steel Pvt. Ltd to Sanyo Special, India's biggest maker of tractors and sport-utility vehicles, it said in a stock-exchange filing.
Mahindra Sanyo is a joint venture between Mahindra & Mahindra Ltd, Sanyo Special Steel Co. Ltd and Mitsui and Co. Ltd.
Following the sale, Mahindra's stake in the company will fall to 29% from 51%. Sanyo’s stake will increase to 51% and Mitsui will hold 20% stake.
The stake sale is expected to be closed by the end of March.
Based at Khopoli in Maharashtra, Mahindra Sanyo is manufacturer and supplier of special steels, alloys and ring products. Mahindra Sanyo was earlier known as Navyug Special Steel.
In 2016-17, the company’s gross turnover stood at Rs 918.43 crore and it registered a net loss of Rs 46.08 crore, according to Mahindra & Mahindra’s annual report.
In September 2012, Mahindra Ugine Steel Company had sold 49% stake in Navyug Special Steel to Mitsui & Co and Sanyo Special Steel Co for Rs 218 crore ($39 million).
In October 2013, Mahindra Ugine Steel Company had sold its entire shareholding of 51% in Mahindra Sanyo to Mahindra & Mahindra Ltd.
Recent deals by Mahindra & Mahindra
In January, Mahindra & Mahindra agreed to buy a 26% stake in MITRA Agro Equipments Pvt Ltd for up to Rs 8 crore ($1.25 million) in cash to expand its portfolio of agricultural equipment.
In December 2017, the company invested in Finland-based startup Medixine Oy.
In September 2017, the firm had signed a pact to acquire Turkish tractor maker Erkunt Traktor Sanayi AS and its affiliate Erkunt Sanayi AS.
In January 2017, it had agreed to acquire a 75.1% stake in Turkish farm machinery maker Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi.