Mahindra Two Wheeler announced today that Kinetic Engineering has sold its entire equity stake in Mahindra Two Wheelers Limited to Samena Capital, a private equity investment group. It was in 2008 that Kinetic sold its two wheeler business assets to Mahindra for cash as well as a 20% equity stake.
The deal sees Kinetic receiving a consideration of approximately Rs. 1821 million but after certain committed payments including NCD repayments, cost of financing etc; the net proceeds would amount to approximately Rs. 1098 million, which Kinetic plans to use for its business operations.
Commenting on the transaction, Sulajja Firodia Motwani, Vice Chairperson of Kinetic Engineering said, "Kinetic is extremely proud of its partnership with M&M. We are certain that MTWL will grow from strength to strength to become a significant player in the two-wheeler industry. Kinetic is now focused on building its Automotive Systems business through its various group companies."
Anoop Mathur, President, Two Wheeler Sector, Mahindra & Mahindra, too said, "We welcome our new partner Samena Capital at a time when our business is growing strongly driven by rising demand for the Centuro motorcycle which has been developed based on keen consumer insights."
