Mahindra CIE Automotive, Mahindra Ugine Steel, Mahindra Composites zooms 20%

Shares of Mahindra CIE Automotive, Mahindra Ugine Steel Company (MUSCO) and Mahindra Composites have zoomed 20% each on BSE after the Bombay High Court has sanctioned the scheme of amalgamation.

Mahindra CIE Automotive and MUSCO have locked in upper circuit of 20% each at Rs 219 and Rs 558 respectively, while Mahindra Composites too up 20% at Rs 174 on BSE.

Mahindra Ugine Steel has informed that the Hon’ble Bombay HC has sanctioned the scheme of amalgamation between Mahindra Hinoday Industries, Mahindra Ugine Steel, Mahindra Gears International, Mahindra Investments, Participaciones Internacionales Autometal Tres, S.L. and Mahindra CIE Automotive and their respective shareholders and creditors.

In June 2013, Mahindra Group has agreed to merge its five listed and unlisted subsidiaries and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5% in CIE Automative.

As part of the transaction, CIE Automotive - through one of its subsidiaries - will acquire from Mahindra Group a stake in its listed and unlisted companies belonging to Systech Automotive Component business and CIE Automotive will contribute its forging businesses in Spain and Lithuania and together consolidate all companies under MFL which will be rechristened Mahindra CIE.