Mahindra & Mahindra has hiked its stake in its Finland-based arm Sampo Rosenlew Oy to 100% with the acquisition of residual shares for over Rs 35 crore.
The move follows Mahindra’s earlier announcement in December 2020, when it increased its stake in combine harvester maker Sampo Rosenlew Oy to 79.13% with the acquisition of additional 1,050 shares for Rs 31.15 crore.
Mahindra had executed an option exercise share purchase agreement to acquire 1,317 equity shares of Sampo Rosenlew, pursuant to the exercise of a call option by it on the other shareholder of Sampo. Subsequently, the shareholding and consequent voting rights of Mahindra in Sampo would increase from 79.13% to 100% of the equity share capital of Sampo and it would become a wholly owned subsidiary of the company.
The consideration will be paid in cash and the 1,317 equity shares of Sampo are being acquired at a price of euro 3,333 (Rs 2.6 lakh) per share aggregating euro 43,89,561 (Rs 35.57 crore).
Sampo is known for its mid-sized combine harvesters in markets, including Europe and North Africa. It is also a joint venture partner of Mahindra for combine harvesters in Algeria.
Going forward, Sampo will jointly focus on the combine harvesters and specialty harvester business in Asia, Africa, Eurasian Economic Union countries and Latin America.
Mahindra says its scale in tractors and Sampo’s expertise in combine harvesters will allow both companies to offer a broader product portfolio to address the needs of farmers in various countries.
For the fiscal ended March 31, 2022, Sampo had a turnover of 52 million euro (Rs 416 crore).