Mahindra & Mahindra (M&M) is in talks to acquire Japan's Sumitomo Corp's entire stake in heavy vehicle-maker SML Isuzu, CNBC-Awaaz reported on March 24 citing sources.
The deal is likely to help M&M expand into the trucks and buses segment. M&M is looking at valuation of Rs 1,400-1,500 per share for SML Isuzu, the channel reported.
At 1:05 pm on March 24, SML Isuzu shares were trading 5% higher at Rs 1,732 apiece. The market capitalisation of the stock is Rs 2,500 crore. Its 52-week high is Rs 2,405 and 52-week low is Rs 1,028.
M&M board is likely to meet this week to evaluate the proposal, added CNBC-Awaaz. M&M told the channel it does not wish to comment on the speculation.
As of December 2024, promoter Sumitomo Corporation held 43.96% stake in SML Isuzu, showed exchange data. Japan's Isuzu, which manufactures SUVs and pickup trucks through another entity, owns a 15% stake in SML Isuzu.
Net profit of SML Isuzu declined 80.22% to Rs 0.53 crore in the quarter ended December 2024 as against Rs 2.68 crore during the previous quarter ended December 2023. Sales declined 14.07% to Rs 331.80 crore in the quarter ended December 2024 as against Rs 386.13 crore during the previous quarter ended December 2023.
At 1:10 pm on March 24, M&M shares on BSE were trading 1.5% lower at Rs 2,759 apiece.
CNBC-TV18 had reported back in June 2023 that JBM Auto is among the top contenders to acquire SML Isuzu as Sumitomo Corporation, SML Isuzu's Japanese promoters were looking to exit their India operations, sources had said back then.
At 1:16 pm on March 24, JBM Auto shares were trading 14% higher at Rs 646 apiece.
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