Mahindra & Mahindra on Monday announced that it has increased its stake in its Finland-based arm Sampo Rosenlew Oy to 100% through the acquisition of residual shares for more than Rs 35 crore.
In December 2020, the company increased its stake in Sampo Rosenlew Oy to 79.13 percent by purchasing an additional 1,050 shares for Rs 31.15 crore.
Mahindra & Mahindra (M&M) said in a regulatory filing on Monday that it executed an option exercise share purchase agreement to acquire 1,317 equity shares of Sampo Rosenlew Oy, pursuant to the exercise of a call option on Sampo's other shareholder.
Following that, M&M's shareholding and voting rights in Sampo would increase from 79.13 percent to 100 percent of Sampo's equity share capital, and the company would become a wholly-owned subsidiary.
The consideration will be paid in cash, and the 1,317 Sampo equity shares will be acquired at a price of Euro 3,333 per share, for a total of Euro 43,89,561 (Rs 35.57 crore), according to the filing.
Sampo is well-known in markets such as Europe and North Africa for its mid-sized combine harvesters. It is also an M&M joint venture partner in Algeria for combined harvesters.
M&M and Sampo announced a joint focus on the combined harvester and specialty harvester business in Asia, Africa, and the Eurasian Economic Union countries and Latin America.
According to M&M, the company's scale in tractors and Sampo's expertise in combine harvesters enable both to offer a broader product portfolio to meet the needs of farmers in various countries. According to the filing, Sampo made a profit of Euro 52 million in the fiscal year that ended March 31, 2022.
