Mahindra restructures its subsidiaries in Turkey

Erkunt Traktor to acquire Hisarlar's Agricultural Machinery business; MOICML to divest its stake in the non-core Metal Fabrication business of Hisarlar

Mahindra and Mahindra today announced that its subsidiary Erkunt Traktor Sanayi A.S. (Erkunt), will acquire the Agriculture Machinery business from Hisarlar Makina Sanayi ve Ticaret Anonim irketi (Hisarlar), also a subsidiary of the company.

In a reverse deal, Mahindra Overseas Investment Company (Mauritius) (MOICML), a wholly owned subsidiary of the Company, and Erkunt have agreed to sell their entire stake of 94.3% in Hisarlar, for an aggregate consideration of Turkish Lira 6.6 million (equivalent to approx. Rs 5.6 crore).

As part of the restructuring its subsidiaries in Turkey, Mahindra Group will exit Hisarlar's Metal Fabrication business. While, Erkunt will acquire the Agricultural Machinery business of Hisarlar, including select related assets, Intellectual Property and Brand use rights. Mahindra Group, through Erkunt will continue to stay invested in the core business of Agricultural Machinery products ranging from soil tillage to post harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar.

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