Mahindra & Mahindra on Thursday said it will increase holding in its arm Mahindra & Mahindra Financial Services ltd (MMFSl) to 53.25 per cent through acquisition of 2.5 crore shares for a cash consideration of Rs 1,055 crore. It has agreed to subscribe 2.5 crore equity shares of Rs 2 each of MMFSl at a premium of Rs 420 per share on a preferential basis, M&M said in a BSE filing.
After the acquisition, M&M’s holding in MMFSl will increase to 53.25 per cent from 51.2 per cent earlier, it added. MMFSl is making the preferential issue to augment its long-term resources to meet its business growth and funding requirements, investment in its subsidiaries and joint ventures, meeting long-term working capital requirements, among others, the filing said. The acquisition is expected to be completed by December 14, 2017, M&M added.