Mahindra & Mahindra (M&M) on Friday informed about the termination of share purchase agreement with CLP India to sell the entire stake in Neo Solren (NSPL), held by its subsidiary Mahindra Renewables (MRPL).
In February 2020, M&M had announced that its wholly-owned subsidiary, MRPL, would sell its stake in three subsidiaries viz. Cleansolar Renewable Energy (CERPL), Divine Solren (DSPL) and NSPL to CLP India for a consideration of approximately Rs 340 crore.
In May 2020, M&M said that in view of the COVID-19 pandemic, the stake sale by MRPL in NSPL was expected to be completed by the end of August 2020. In August 2020, the company extended the stake sales deadline by a month, stating that the sale of NSPL was expected by September 2020.
"Given that the closing has not occurred within the agreed timeframes, the share purchase agreement which was entered into for sale of 93.15 lakh equity shares NSPL held by MRPL to CLP India stands terminated on 10 September 2020, M&M said in a BSE filing made after market hours on Friday.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
The company's consolidated net profit slumped 93.9% to Rs 54.64 crore on a 37.3% decline in net sales to Rs 16,321.34 crore in Q1 June 2020 over Q1 June 2019.
Shares of M&M gained 0.95% to Rs 619.55. It traded in the range of 616.20 and 629.40 so far during the day.
On a year-to-date (YTD) basis, shares of M&M have gained 16.52% while the benchmark S&P BSE Sensex has lost 6.01% during the same period.
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