M&M to buy 55% Meru stake for cash up to Rs 201.5 crore

New Delhi: Homegrown utility vehicles major Mahindra & Mahindra is acquiring 55% stake in ride hailing and radio taxi operator Meru Travel Solutions for a cash consideration of up to Rs 201.5 crore, according to a regulatory filing by the company.

The company signed a share subscription and shareholder agreement on Saturday for subscribing up to 55% of equity share capital of Meru Travel Solutions Pvt Ltd in tranches, Mahindra & Mahindra said.

Under the agreement, after investment of the first tranche in Meru, M&M will have the right to appoint majority of the directors on the board of Meru and will control its composition, it added.

"Upon obtaining such right, Meru will become a subsidiary of the company," M&M said, adding subsidiaries of Meru -- Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd and V-Link Fleet Solutions Pvt Ltd -- would in turn also become subsidiaries of M&M.

As per the filing, the deal will be through cash consideration and M&M would invest an amount not exceeding Rs 201.5 crore in Meru.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in