The M&M board has approved the Scheme of Merger by absorption of Mahindra Heavy Engines (MHEL)and Mahindra Two Wheelers (MTWL) and Trringo.com (TCL) as wholly owned subsidiaries of the Company.
The consolidation of the group companies is seen leveraging on synergies on consolidation. It is expected to enable streamlining the holding structure along with ease of management, reduction of operating and administrative costs.
There will be no change in the shareholding pattern of the Company pursuant to the merger as no shares are being issued by the Company in connection with the Scheme. The entire assets and liabilities of MHEL, MTWL and TCL to be transferred to and recorded by the Company at their carrying values. All inter-company balances and agreements, if any, between Transferor Companies and the Company shall come to an end. . The Transferor Companies are wholly owned subsidiaries and as such the said companies are related party to each other.
MHEL is currently engaged in manufacturing and sales of engines and other auto components for vehicles and genset applications. MTWL is dealing in parts required for the range of two-wheelers, passenger light motor vehicles and commercial vehicles. It also undertakes procurement, warehousing management, logistics and sale of spare parts and accessories.TCL is into the business of organized farm equipment rentals through a franchisee-based model.
The consolidation is subject to requisite approvals/consents as per the BSE filing.
