M&M To Merge Mahindra First Choice With TVS Automobile

M&M will sell its entire stake aggregating 100 per cent of the paid-up equity share capital in Mahindra First Choice Services (MFCSL) and its entire stake amounting to 100 per cent of optionally convertible redeemable preference shares in Auto Digitech Private to TVS Automobile Solution (TASL), the auto major said in a regulatory filing to the stock exchanges.

Under the aegis of the transaction, M&M will acquire 2.76 per cent stake in the TVS group firm TASL, which is into multi-brand automotive aftermarket and related services, for about Rs 35 crore. And TASL will acquire the entire stake of Mahindra Holdings Ltd, a wholly-owned subsidiary of M&M, in Mahindra First Choice Services Ltd (MFCS) and its subsidiary Auto Digitech Pvt Ltd (ADPL), M&M elaborated.

The move will enable the respective organisations to combine their strengths to organise the highly fragmented automobile aftermarket services space in India, thereby providing superior value to customers, channel partners, employees and other stakeholders, M&M emphasized.

M&M said it expects the transaction to be completed by February 28, 2021.

The shares of M&M firmed up by more than half a per cent in a listless market on the back of the news development. At 9:55 am, the M&M shares were trading at Rs 733.90, higher by 0.6 per cent, on the BSE, as against an absolutely flat BSE Sensex.