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.