Mahindra & Mahindra acquires FGVL

Mahindra & Mahindra announced that its subsidiary Mahindra First Choice Wheels Limited (MFCWL) has acquired Fifth Gear Ventures Limited (FGVL).

MFCWL is a board controlled subsidiary i.e. wholly-owned subsidiary of Mahindra Holdings Limited (MHL). On January 17, 2020, MFCWL signed a Share Purchase Agreement (SPA) to acquire up to 100 per cent of the paid-up equity share capital of FGVL in one or more tranches. The amount would not be exceeding Rs 30.45 crore, borne by MFCWL through cash payment and issuance of MFCWL shares. Post this; MFCWL completed the first part of the acquisition today to acquire 50.02 per cent of the equity share capital of FGVL. This has made FGVL a subsidiary of MFCWL and thus, of MHL as well. The acquisition by MFCWL of the balance 49.98 per cent shares of FGVL is in the process and is expected to be completed by March 31, 2020.

FGVL is an unlisted public company based out in Delhi and is engaged in the business of maintaining and operating the website-www.carandbike.com, which is an e-commerce market platform to facilitate sale and purchase of new and used vehicles and also, to keep the users updated with the latest information and reviews from the automotive industry.

On Tuesday, the stock of the company Mahindra & Mahindra closed at Rs 572.65, down by 0.98 per cent or Rs 5.65 per share. The 52-week high is Rs 715 and 52-week low is Rs 502.70 on BSE.