M&M to buy 13.5% stake in CIE Auto for € 96.24m

Mahindra & Mahindra announced that it has inked a mega global alliance with Spanish auto component company CIE Auto on Saturday at a board meeting, reports CNBC-TV18. The announcement also mentioned the purchase of 51 lakh shares in Mahindra Sanyo Special Steel Private Limited (MSSSPL). Mahindra & Mahindra will pay Rs 214.3 crore for the 51%-stake in MSSSPL.

The deal between M&M and CIE Auto was inked after discussions that stretched over two years. According to the agreement, the auto major will buy a 13.5-percent stake in CIE  Auto for 96.24 million euro at at 6 euro per share. Mahindra & Mahindra, as per the deal, will also sell stakes in some of its susbsidiaries to CIE Auto.
These include- 52.65-percent in Mahindra Forgings for Rs 393 crore, 64.96 percent in Mahindra Hinoday Industries for Rs 269 crore, 30.38 percent in Mahindra Composites for Rs 10 crore and Mahindra Holdings will sell its 4.98-percent stake in Mahindra Composites for Rs 1.6 crore.
CIE Auto is a Spanish auto component manufacturer whose clients include Suzuki, Volkswagen and PSA. The component manufacturer declared an EBITDA of 224 million euros and a turnover of 1,645 million euro in 2012.