Mah and Mah - Ssangyong Motor Company to Increase Paid-In Capital by KRW 80 Billion to Secure Investment Funds; Mahindra intends to invest
Mahindra & Mahindra Ltd has informed BSE that the Company is in receipt of an intimation from Ssangyong Motor Company Limited, a Korean subsidiary of the Company ("SYMC") informing the Company about a decision taken at the Board Meeting of SYMC held on February 14, 2013, approving of a third party allotment (Preferential Offer) to the Company of 1,45,45,455 Equity Shares at an issue price of 5,500 Korean Won per share for an amount aggregating around 80 billion Korean Won.
In furtherance of the above offer, the Company has decided to subscribe to the aforesaid offer and invest an amount aggregating around 80 billion Korean Won (equivalent to around US$ 73.73 million at the current rate of exchange).
The said preferential offer would result in an increase in the paid-up capital of SYMC by 11.9% and increase in the Company’s Shareholding in SYMC from 69.63% to 72.85%. The said issue would facilitate improvement of the financial structure of SYMC and proceeds of the issue would be utilised by SYMC for new product development and strengthen its competitiveness.
In this regard, the Company has submitted to BSE a copy of Press Release issued by SYMC titled "Ssangyong Motor Company to Increase Paid-In Capital by KRW 80 Billion to Secure Investment Funds; Mahindra intends to invest".