Ashok Leyland, others buy Everfin's 7% stake in Hinduja Leyland Finance

The cash deal, which is valued at Rs 390 cr, will be spread over nine months over various tranches

Ashok Leyland and other investors have entered into a Supplemental Share Purchase Agreement with Everfin Holdings, to acquire the latter's seven per cent stake in Hinduja Leyland Finance Limited (HLFL).

HLFL is a subsidiary of Ashok Leyland. Its revenue as on March 31, 2019 stood at Rs 2,560.64 crore, while the profit was Rs 275.64 crore.

The cash deal is valued at around Rs 390.49 crore. The purchasers will collectively acquire 3,28,14,401 shares of a face value of Rs 101 each, constituting seven per cent of HLFL's paid-up equity capital. Of this, Ashok Leyland will pick up 4.89 per cent, while 2.11 per cent will be acquired by other investors at an agreed price of Rs 119 per share. Everfin's stake sale is a partial dilution.

The agreement to acquire the equity shares of HLFL has been spread over a period of nine months in various tranches, Ashok Leyland said.